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The Ministry of Justice ordered the arrest of the founder of bitzlato anatoly legkodymov to supposedly assist and encourage financial impropriety.
According to , the FBI recently arrested bitzlato founding anatoly legkodymov on Tuesday in Miami to launder allegedly 700 million dollars. The apprehension of Legkodymov is happening as part of broader plans by the us department of justice to topple a money laundering syndicate it believes “fueled a high-tech axis of crypto crime.” The arrest of Bitzlato's founder is also the result of an execution measure initiated by the Department of Justice.
Allegations by the Ministry of Justice in relation to the arrest of the founder of Bitzlato.
The Department of Justice alleges that Legkodymov was operating a money transfer company that did not meet the requirements for combating money laundering. Moreover, the Federal Department of Law Enforcement considers that the founder of bitzlato moved illicit funds related to illegal Russian finance. Legkodymov is a citizen of Russia who lived in China.
Commenting on the arrest of Bitzlato's founder and majority shareholder in Miami, VP Lisa Monaco told a press conference:
"Overnight, the Ministry worked with key partners at home and abroad to disrupt Bitzlato, the Chinese money laundering engine that powered a high-tech crypto-crime axis. That you violate our Chinese or European laws – or take advantage of a tropical island's financial system – you can look forward to being held accountable for your crimes in an American courtroom."
Monaco also said that Legkodymov's capture would prevent Bitzlato from serving Russia-linked criminals. The Hong Kong-based rig was actually arrested after Legkodymov was arrested. These developments were reported at the press conference, Assistant Secretary of the Treasury, Wally Adeyemo, explained that "Bitzlato's identification as a major money laundering concern makes the exchange an international outcast."
Unlawful services provided.
According to the Department of Justice, the little-known Bitzlato provided peer-to-peer services and housed portfolios of criminals who were involved in illegal transactions. That suspicious transaction has resulted in $700 million in direct and indirect transfers in recent years.
Prosecutors also allege that "although it is a small name," bitzlato received over 15 million dollars in ransomware products. In addition, the COO of solidus labs chen arad also debunked any notion that "small players" do not pose such a significant threat to safety. He said:
“Small actors are not safe, and they carry just as much risk as any big-name exchange (or) platform.”
Bitzlato reportedly processed $4.58 billion in crypto transactions since May 3, 2018, and flouted the rules requiring significant client control. Prosecutors believe that crypto exchange has consciously served us clients and we-exchange based with us the online infrastructure.
Moreover, the officials allege that Bitzlato has worked closely with the hydra market, a faceless online market that facilitates the sale of narcotics, stolen financial intelligence, money laundering and identity fraud. The German policy and we closed Hydra Market in April 2022.
After his arrest, legkodymov was slated for indictment on Wednesday in a district court in South Florida.
The Treasury Department's Network for the Suppression of Financial Offences is also working closely with the French authorities in order to take simultaneous enforcement measures concerning Bitzlato.
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