Russian Co-founder of Bitzlato Pleads Guilty to Money Laundering Charges
The co-founder of crypto exchange Bitzlato, Anatoly Legkodymov, has pleaded guilty to money laundering charges, according to a press release from the U.S. Department of Justice (DoJ). Legkodymov admitted to operating a money transmitting business that facilitated the transport and transmission of over $700 million in illicit funds.
Bitzlato’s Connection to Criminal Activities
Bitzlato was identified as a primary provider for dark market purchasers and sellers, as well as a “safe haven for ransomware criminals,” according to the DoJ. Under the plea agreement, Legkodymov will dissolve Bitzlato and relinquish any claim over the $23 million in seized assets of the crypto exchange.
“Legkodymov’s guilty plea today confirms that he was well aware that Bitzlato, his cryptocurrency exchange, was being used like an open turnstile by criminals eager to take advantage of his lax controls over illicit money transactions.” – U.S. Attorney Breon Peace
Connection Between Bitzlato and Hydra Market
In January 2023, Legkodymov was arrested on charges of money laundering shortly after the U.S. DoJ announced a global crypto enforcement action. Bitzlato is believed to have been associated with Hydra Market, an online illegal narcotic marketplace involved in criminal activities such as drug trafficking, money laundering, and the sale of illegally obtained financial information and fraudulent identities.
Link Between Bitzlato and Binance
The U.S. Treasury’s FinCEN later revealed that Bitzlato’s transactions were heavily linked to Binance, a cryptocurrency exchange whose founder Changpeng Zhao resigned as part of a $4.3 billion settlement with U.S. regulators. Binance has suspended accounts connected to transactions from Bitzlato while further investigations are ongoing.
Hot Take: Co-founder of Bitzlato Pleads Guilty to Money Laundering Charges
The guilty plea of Anatoly Legkodymov, co-founder of Bitzlato, highlights the serious consequences of involvement in illicit money transactions within the crypto industry. Legkodymov’s admission to operating a money transmitting business that facilitated the movement of over $700 million in illegal funds emphasizes the need for stricter controls and regulations in the cryptocurrency space. This case also sheds light on the interconnectedness between crypto exchanges and criminal activities, as evidenced by Bitzlato’s association with Hydra Market and its transactions linked to Binance. It serves as a reminder that combating money laundering and illicit activities remains a crucial priority for authorities in order to maintain trust and integrity in the crypto market.
By
By
By
By
By