Bitzlato Halts Bitcoin Withdrawals Temporarily
Cryptocurrency exchange Bitzlato has announced a temporary halt on Bitcoin withdrawals following the criminal charges faced by its former CEO and co-founder, Anatoly Legkodymov. The exchange explained that this decision is in preparation for upcoming legal proceedings in France.
Legkodymov Agrees to Dissolve Bitzlato
As part of his guilty plea in the US, Anatoly Legkodymov, the co-founder and CEO of Bitzlato, has agreed to dissolve the exchange. Legkodymov was arrested in January on charges of facilitating money laundering and transferring around $700 million in illicit funds. The exchange’s assets were seized, but it restored partial access to user funds in March.
Association with Hydra Market and Binance Implication
Legkodymov disclosed that Bitzlato had dealings with Hydra Market, a darknet marketplace shut down by US and German law enforcement. Additionally, US authorities mentioned Binance as one of the top three counterparties with Bitzlato, implying its involvement in the case.
Hot Take: Bitzlato Faces Obstacles Amidst Legal Troubles
Bitzlato’s decision to temporarily halt Bitcoin withdrawals highlights the challenges the exchange is facing due to the criminal charges against its former CEO. With Legkodymov agreeing to dissolve Bitzlato as part of his guilty plea, the exchange’s future is uncertain. The association with Hydra Market and Binance’s implication adds to the complexity of the situation. Bitzlato will need to navigate through these legal troubles to regain trust and credibility in the cryptocurrency market.
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