Bitzlato Founder Pleads Guilty for Money Laundering Charges
Anatoly Legkodymov, the co-founder of Bitzlato, a Hong Kong-registered virtual currency exchange, has entered a guilty plea for money laundering charges. Initially arrested in Florida, Legkodymov’s case was transferred to New York.
Allegations Against Bitzlato
The U.S. Department of Justice (DoJ) disclosed that Legkodymov is responsible for “transporting and transmitting” more than $700 million in illicit funds. The DoJ alleges that Bitzlato served as a major service provider for participants in dark markets and provided a “safe haven for ransomware criminals.”
Plea Agreement and Seized Assets
As part of the plea agreement, Legkodymov will dismantle Bitzlato and relinquish any claim to the seized assets of the crypto exchange, amounting to over $23 million.
Connections to Hydra Market and Ransomware Proceeds
Reportedly, Bitzlato has connections to Hydra Market, an online illegal narcotic marketplace involved in criminal activities. Bitzlato received over $15 million in ransomware proceeds, asserting that Legkodymov and his team knew criminals were utilizing the exchange. Europol has made allegations that Bitzlato was involved in laundering funds exceeding $1 billion.
Arrests of Key Figures Associated with Bitzlato
In addition to Legkodymov, several key figures associated with Bitzlato were apprehended in various European countries. Co-founder Anton Shkurenko has eluded capture and expressed intentions to relaunch the platform. However, French authorities have seized Bitzlato’s infrastructure.
Designation as a “Primary Money Laundering Concern”
Bitzlato was designated a “primary money laundering concern” by the Department of the Treasury’s Financial Crimes Enforcement Network. French authorities seized Bitzlato’s infrastructure in January.
Hot Take: Bitzlato Founder Pleads Guilty for Money Laundering Charges
Anatoly Legkodymov, the co-founder of Bitzlato, has pleaded guilty to money laundering charges. The U.S. Department of Justice alleges that Bitzlato served as a major service provider for participants in dark markets and provided a safe haven for ransomware criminals. As part of the plea agreement, Legkodymov will dismantle Bitzlato and relinquish over $23 million in seized assets. Reports suggest that Bitzlato had connections to Hydra Market and received millions in ransomware proceeds. Several key figures associated with Bitzlato have been apprehended, and French authorities have seized the platform’s infrastructure. Overall, this case highlights the ongoing efforts to combat money laundering and illicit activities in the cryptocurrency industry.
By
By
By
By
By