Cryptocurrency exchange Bitzlato has temporarily halted Bitcoin withdrawals following the guilty plea of its former CEO and co-founder, Anatoly Legkodymov, to criminal charges in the US. Legkodymov agreed to dissolve the exchange as part of his plea deal, which also involved forfeiting $23 million in cryptocurrency.
The decision to suspend Bitcoin withdrawals is said to be temporary, as Bitzlato prepares for upcoming legal proceedings in France. The exchange’s assets were seized after Legkodymov’s arrest, but partial access to user funds was restored in March.
Bitzlato’s association with Hydra Market, a darknet marketplace shut down by US and German law enforcement, was also revealed. Legkodymov acknowledged that Bitzlato exchanged over $700 million in crypto with Hydra. Additionally, US authorities named Binance as a counterparty in the case, stating that it was one of the top three receiving and sending counterparties with Bitzlato.
Overall, Bitzlato’s temporary halt on Bitcoin withdrawals and Legkodymov’s guilty plea highlight the legal challenges faced by the exchange and its involvement with illicit activities. The case also raises questions about the role of cryptocurrency exchanges in facilitating money laundering and serving as a safe haven for criminals.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇫🇷 🇺🇸 🇩🇪 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Anatoly Legkodymov |
| Companies | US Department of Justice, Treasury Department, French law enforcement, Binance, Bitzlato |
| Currencies | Bitcoin |
| Securities | None |
