The cryptocurrency exchange linked Bitzlato has resumed the withdrawal process of digital assets held by its customers. The trading platform was shut down in a joint operation of law enforcement agencies in the United States. It was alleged that the money was used to launder money.
Bitzlato Enables Withdrawal After Remaining Inactive For Weeks
The traders who deposited funds to Bitzlato, the recently seized cryptocurrency exchange, reported that users can now withdraw their coins. This announcement comes after more than a month of inaccessibility of the trading platform, communicated via a Telegram message.
The Hong Kong-registered exchange, also known as Russian Exchange, was taken down in January in a coordinated action of law enforcement agents, when French authorities seized control of the website and their American co-founder, Anatoly Legkodymov, was arrested by U.S. colleagues.
The Department of Justice credited Bitzlato with more than $700 million in proceeds from criminal organizations such as the darknet market Hydra and the Russian crypto pyramid scheme Finiko. According to Europol, it processed more than $1 billion in illicit funds.
“We have been gone for 42 long days, but we are back. A lot of effort has been made to ensure that your data is secure and that the coins are in your wallets,” Bitzlato stated in its post. It was also said that it had been used as “a bargaining chip in backstage games.”
At the end of January, four more members of the team, including three high-ranking members, were arrested in various European countries. The other Bitzlato co-founder, Anton Shkurenko, was briefly detained and interrogated before being released by the Russian police in February.
Prior to that, Shkurenko had given an interview on Youtube stating that Bitzlato was planning to move to Russia to restore operations and withdraw funds. He also indicated that the French investigators had seized Bitzlato’s hot wallet, containing more than a third of its funds.
Crypto Exchange Restarts Withdrawal After Shutdown
Russian crypto exchange Bitzlato has reportedly restored access to its customers’ funds, following its operations being shut down by authorities. The platform has been accused of money laundering and illicit funds were seized.
According to a recent announcement released by the exchange, users will now be able to make withdrawals and access their assets. The exchange stated that the withdrawals will be partial in the beginning.
The platform was shut down by the Russian authorities this past summer, after being accused of money laundering, which the exchange has denied. It had previously been operating without the necessary licenses.
The exchange had noted that it was working with the financial services regulator, Rosfinmonitoring, to devise a plan to return user funds. It further revealed that, while most of the funds had been recovered, some were still in the process of being recovered.
This news has been welcomed by traders, who have been anxious about the fate of their money ever since the platform was shut down. Many have previously expressed their anger at the situation and have called for the platform to be brought to justice.
It remains to be seen if the exchange will be allowed to start operating from Russia again. However, with the platform now able to return user funds, it appears that it is at least one step closer to being able to do so.
Do think about it – Will Russian Authorities Allow Bitzlato To Operate From the Country? Share your thoughts in the comments below.
