Bitzlazo Temporarily Suspends Bitcoin Withdrawals
Crypto exchange Bitzlazo has temporarily suspended the withdrawal of Bitcoins from its platform. In a Telegram post published on Wednesday, the Hong Kong-based crypto exchange announced that it had suspended special balance withdrawals and technical customer support as a “temporary measure.” Bitzlato is currently dealing with impending court hearings related to the confiscated assets of its users in France. The exchange remains determined and optimistic about resolving this issue.
Past Developments
Users of both the web version and the Bitzlato app were granted partial withdrawal access to their Bitcoins on March 20th. On September 14, the platform raised the funds limit to 60%. However, following the arrest of its founder Anatoly Legkodymov in Miami on January 18th, the crypto exchange suspended its operations.
Illicit Activities and Plea Deal
According to a press release from the U.S. Attorney’s Office, Eastern District of New York, Bitzlato processed over $700 million in illicit funds, including millions obtained from ransomware proceeds. Legkodymov pleaded guilty to operating a money transmitting business that transported and transmitted illicit funds.
Investigation by French Prosecutor’s Office
The French Prosecutor’s Office launched an investigation into Bitzlato and Europol stated that the company converted criminal-related assets totaling approximately €1 billion ($1.08 billion). As part of the operation, law enforcement officers also confiscated the platform’s hot wallet, which held around 35% of user funds across all cryptocurrencies at the time.
Hot Take: Bitzlazo’s Suspension Raises Concerns
The temporary suspension of Bitcoin withdrawals by Bitzlazo raises concerns about the platform’s ability to handle its legal issues and protect user funds. With the pending court hearings and investigations into illicit activities, users may be worried about the security of their assets on the exchange. It remains to be seen how Bitzlazo will resolve these issues and regain the trust of its users. In the meantime, it is advisable for crypto investors to exercise caution when using the platform and consider alternative exchanges with a more stable and secure reputation.
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