The US Department of Justice detained Anatoly Legkodymov, the founder of Bitzlato. He was detained because he was involved in one of the most significant international bitcoin enforcement actions.
US captures the Bitzlato Russian Cryptolord
The US cryptocurrency market is facing significant difficulties as several exchanges and citizens have fallen victim to fraud. Only a few months have passed since one of the most significant cryptocurrency frauds in history, the "FTX scam," took place.
Now, the arrest of Bitzlato's founder is making headlines. But, unfortunately, users who trust cryptocurrency companies for good profits are still the primary victims.
The founder of Bitzlato was taken into custody by the Department of Justice (DOJ) of the United States in one of the most significant worldwide cryptocurrency enforcement actions.
According to DOJ sources, the crypto exchange is actively helping facilitate cryptocurrency crime. Interestingly, it is not Binance but a Chinese cryptocurrency exchange. The criticized business began doing business internationally in 2016 and had its Hong Kong registration.
The DOJ claims that the arrested Bitzlato founder was involved in providing services to financial offenders. Several federal agencies, including the FBI, OFAC, and the Financial Crimes Enforcement Network, collaborated on it (FinCEN).
These groups have been working nonstop to keep an eye out for questionable activity among financial firms.
Bitzlato-fueled darknet marketplaces
The federal agencies accuse Bitzlato of facilitating ransomware attacks and running darknet marketplaces. They also facilitate ransomware operations.
They estimate that direct and indirect unlawful transfers related to the ransomware total more than $700 million. The majority of these transactions occurred between 2018 and last year.
The US government stated in a press conference that coordinated actions like those against Bitzlato are essential to the fight against cybercrime on a global scale. The crypto lord apprehended has been identified as Anatoly Legkodymov, a Russian residing in China. But he was detained in Miami, Florida, in the US.
Legkodymov's cryptocurrency exchange, Bitzlato, disregarded the necessary anti-money-laundering protections. Also, as confirmed by the US department, they allowed users to provide information for registrants who were not real, or straw men, customers.
The main charge against this cryptocurrency exchange is that it offered anonymous transactions to criminals and drug dealers. Although the arrestee was a Russian and the prosecution was against a Chinese bitcoin exchange, the condemnation of Russia dominated the US Department of State's press conference.
The officials could be overheard blaming Russia for being the hub of cybercrime, money laundering, etc., as well as the leading cause of the conflict in Ukraine.
