Crypto Firm Bitzlato Arrested in Major US Money Laundering Action
-The United States Department of Justice launched a “major international cryptocurrency enforcement action” against China-based crypto firm Bitzlato and arrested its founder, Anatoly Legkodymov.
-The department considers Bitzlato to be a “primary money laundering concern” connected to Russian illicit finance and allegedly received $206 million from darknet markets, $224.5 million from scams and $9 million from ransomware attackers.
-The United States Securities and Exchange Commission has followed the Commodity Futures Trading Commission in filing parallel charges against the crypto user allegedly behind the multimillion-dollar exploit of decentralized exchange Mango Markets.
The last week has been an eventful one for the crypto world. Bitcoin, the world’s most popular cryptocurrency, has been on a rebound, making around 10% up from Jan. 16 to Jan. 23. But the worrying trend of crypto companies making headlines due to their troubles with the law has yet to change.
The United States Department of Justice launched a “major international cryptocurrency enforcement action” against China-based crypto firm Bitzlato and arrested its founder, Anatoly Legkodymov. The department considers Bitzlato to be a “primary money laundering concern” connected to Russian illicit finance. Reports suggest that the exchange had received $206 million from darknet markets, $224.5 million from scams, and $9 million from ransomware attackers.
The United States Financial Crimes Enforcement Network stated that crypto exchange Binance was among the “top three receiving counterparties” of Bitzlato in terms of Bitcoin transactions. However, it didn’t mention Binance as being among the top sending counterparties.
The United States Securities and Exchange Commission has followed the Commodity Futures Trading Commission in filing parallel charges against the crypto user allegedly behind the multimillion-dollar exploit of decentralized exchange Mango Markets. Avraham Eisenberg is accused of manipulating Mango Markets’ MNGO governance token to steal roughly $116 million.
The arrest of Anatoly Legkodymov and the charges against Avraham Eisenberg are a reminder of how much the crypto industry still needs to do to ensure the safety of its users and to comply with the law. It is hoped that these measures will make the industry more secure and trustworthy, and will help foster the adoption of cryptocurrencies in the mainstream.