Law enforcement agencies around the world are conducting an investigation into a digital currency exchange, Bitzlato, due to potential money laundering and other financial crimes. Four executives of the platform have already been arrested in connection with this multinational inquiry.
Bitzlato Stopped Across Europe
Agents from multiple countries including the United States, France, Belgium, Cyprus, Portugal, Spain, and the Netherlands have launched the investigation. On Monday, Europol, the EU’s Law Enforcement Cooperation Organization, issued a statement that the crypto trading platform may have been used for illegal activities.
Anatoly Legkodymov, a Russian national living in China and the main shareholder and co-founder of Bitzlato, was also taken into custody by US authorities. The multinational inquiry has resulted in the French-based platform being shut down.
Europol reported that eight home searches were conducted during the investigation, four of which were in Spain. A total of 18 million euros ($19.5 million) worth of crypto wallets, cars, exchange accounts, and digital devices were confiscated, bringing the total to 50 million euros.
Nearly Half of Bitzlato Transactions Linked to Illegal Activity
Bitzlato allows people to trade virtual assets for fiat currencies, including ethereum, bitcoin, and bitcoin cash. According to Europol, the exchange has processed payments of 2.1 billion euros. The agency commented:
“Although the conversion of digital currencies into fiat currencies is not a criminal offense, investigations into cybercriminal networks have revealed that considerable amounts of criminal assets have been transacted through the platform. Analysis revealed that around 46% of the funds were exchanged through Bitzlato, equating to one-billion euros and being connected to criminal acts.”
Most of the suspicious transactions were related to the US Department of Justice’s Office of Foreign Assets Control (OFAC), while the others were linked to offenses such as ransomware attacks and scams.
On Jan. 18, US authorities described the disabling of Bitzlato as a “blow to cryptocrime” inflicted as part of an “international cryptocurrency enforcement action.” Europol further noted that between 2015 and 2020, 1.5 million BTC transactions were conducted by Bitzlato users and the Hydra Darknet marketplace, which was shut down in April 2021.
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