Co-founder of Bitzlato crypto exchange admits guilt in AML breaches
Anatoly Legkodymov, the Russian co-founder of the cryptocurrency exchange Bitzlato, has pleaded guilty to charges of money laundering, according to a press release from the U.S. Department of Justice (DoJ) on December 6, 2023. Legkodymov admitted to operating a money transmitting business that facilitated the transportation and transmission of more than $700 million in illicit funds. The DoJ alleges that Bitzlato served as a primary provider for both buyers and sellers on the dark market and acted as a safe haven for ransomware criminals. As part of his plea agreement, Legkodymov will dismantle Bitzlato and relinquish any claims to the $23 million in assets seized from the exchange.
In January 2023, shortly after the U.S. Department of Justice announced a major global crackdown on cryptocurrencies, Legkodymov was arrested on charges of money laundering. Bitzlato is believed to have had connections to Hydra Market, an illegal online marketplace known for narcotics trade and various criminal activities such as money laundering, drug trafficking, the sale of illegally obtained financial information, and identity fraud.
Further investigations revealed that Bitzlato’s transactions were heavily intertwined with Binance, a cryptocurrency exchange whose founder, Changpeng Zhao, resigned in late November 2023 as part of a $4.3 billion settlement agreement with U.S. regulators. In response, Binance has suspended accounts associated with transactions from Bitzlato as additional inquiries are conducted.
The U.S. Department of Justice plans to expand its crypto team and intensify efforts to combat ransomware crimes. Stay updated by following us on Google News.
