Founder of Bitzlato seized for reportedly handling criminal transactions totalling $700 million

The Department of Justice said that it initiated an enforcement action against the cryptocurrency exchange Bitzlato, describing it as a “high-tech axis of cryptocrime.” Tuesday night in Miami, the FBI detained Bitzlato founder Anatoly Legkodymov, according to a news conference.

The creator of cryptocurrency exchange Bitzlato was detained and accused of processing $700 million in illegal payments as part of the Justice Department’s attempts to dismantle a “money laundering engine” that “powered a high-tech axis of cryptocrime,” according to the department.

Anatoly Legkodymov was detained in Miami on Tuesday evening for allegedly running a money transmission firm that did not comply with anti-money laundering regulations and transported illegal monies. On Wednesday, the 40-year-old Russian citizen now residing in China will be arranged in the United States District Court for the Southern District of Florida.

“Overnight, the department collaborated with important partners in the United States and internationally to destroy Bitzlato, the China-based money laundering operation that supported a high-tech cryptocrime axis.” 

According to authorities, Bitzlato worked for the Hydra Market, an anonymous internet marketplace for drugs, stolen bank information, false identity papers, and money laundering services. The DOJ asserts that Hydra users transferred more than $700 million in cryptocurrencies with Bitzlato before the latter’s closure last year.

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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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