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Bitzlato cryptocurrency linked to Russia, seized by Western law enforcement, recovery plans and allow partial withdrawals, announced a co-founder. The members of the negotiating platform team also intend to relocate the company to Russia.
The co-founder claims that Exchange will make user funds available.
Crypto exchange Bitzlato is taking steps to restore operations and immediately permit customers to withdraw bitcoin, one of its founders, Anton Shkurenko, said in an interview with Satoshkin Live, a Youtube channel devoted to crypto investment and trading, quoted by major Russian-language crypto news outlets Forklog and Bits.media.
In January, the Hong Kong-registered platform was busted as part of an international law enforcement action described by U.S. authorities as a “blow to crypto crime.” It allegedly processed $700 million of illicit funds received from criminal entities such as the darknet market Hydra and the Russian crypto Ponzi scheme .
Its other co-founder, Anatoly Legkodymov, a Russian resident in China, was arrested in Miami and several other members of the team were in Europe. The service was interrupted by the involvement of the French authorities who took control of its servers and dismantled its website.
Shkurenko said to the satoshkin host, dmitry stepanin, that the French officers were able to seize the hot portfolio of bitzlato which at the time stored about 35% of user funds in various cryptocurrencies. He did not provide the exact amount, but he denied the reports that the total was over $1 billion.
The executive also denied accusations that the company has evaded taxation and assured it has always complied with know-your-customer and anti-money laundering regulations under European laws while cooperating with law enforcement to prevent illegal activities. He also expressed the hope that the charges would soon be dropped and that the arrested persons would be released.
Four bitzlato employees were arrested with the involvement of europol and shkurenko revealed their identity – the former executive director mikhail lunev, head of marketing alexander goncharenko, pavel lerner, one contractor working to implement the dao monolith, and a system administrator determined to be konstantin. He was let go on bail in Cyprus.
Cryptocurrency Exchange Bitzlato to Relocate to Russia
Bitzlato is currently auditing its losses, the co-founder said and further unveiled that the company plans to move to Russia and renew its activities under Russian jurisdiction. At the moment, Bitzlato is looking for a contractor in infrastructure, he said.
With regard to the reimbursement of user funds, anton shkurenko assured that clients will be able to remove 50% of the portfolios in bitzlato on the day the platform is launched again. The participations in the spare parts will be progressively released without any timetable being specified.
The world’s largest crypto exchange, Binance, which was one Bitzlato’s biggest recipients, having reportedly processed $346 Million of funds from the platform, blocked some accounts of Bitzlato users in Eastern Europe and the Commonwealth of Independent States following the law enforcement operation. Later primary exchange says he restored access to most of these accounts.
Do you believe that the bitzlato crypto exchange will be able to reimburse users if it restores operations? Please tell us in the comments below.
