Bitzlato, a Russia-linked cryptocurrency exchange, has announced a temporary suspension of certain withdrawal requests despite having its assets seized by French authorities. The company stated that this measure is necessary to prepare for upcoming court hearings regarding the seizure of user assets in France. It is unclear which transactions are classified as “special balance withdrawals” and whether the freeze is limited to France.
In January, Bitzlato had its assets and infrastructure seized by French authorities and other international law enforcement agencies, including the U.S. As a result, the company’s website is currently closed and displays a message from authorities. However, Bitzlato claims to have closed 70% of the balance it held when its service was closed, despite the seizure. The company did not provide details on how it plans to meet its obligations with its assets frozen.
The U.S. Treasury has identified Bitzlato as a money laundering concern connected to illegal Russian financing and has prohibited transactions with the exchange. The U.S. Department of Justice has also highlighted Bitzlato’s involvement in money laundering and other crimes, alleging that the exchange laundered $700 million in connection to Hydra Market, a now-defunct Russian darknet market. Several company executives, including Bitzlato’s founder Anatoly Legkodymov, have been prosecuted. Legkodymov has pleaded guilty in the U.S. and agreed to forfeit $23 million to prosecutors. He faces up to five years in prison.
In addition to the legal troubles in the U.S., European authorities arrested senior management linked to Bitzlato in January 2023. The company’s future remains uncertain as it navigates through the legal proceedings and attempts to recover from the asset seizure.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇫🇷 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | Anatoly Legkodymov |
| Companies | Bitzlato, Hydra Market, U.S. Department of Justice, None, FinCEN |
| Currencies | None |
| Securities | None |
