Market Analysis Report (19 Jan 2023)

The U.S. Justice Department and Treasury Department have charged Hong Kong-based cryptocurrency exchange Bitzlato with money laundering and arrested its founder, Anatoly Legkodymov, in Miami.

Authorities seized the cryptocurrency exchange, saying it processed more than $700 million in illicit funds, breaking rules meant to thwart money laundering.  The Treasury’s Financial Crimes Enforcement Network (FinCEN) labelled the company a “primary money-laundering concerns,” which is among the most serious sanctions in the government’s arsenal.

Treasury Deputy Secretary, Wally Adeyemo, said the label effectively declares the exchange “an international pariah.” According to Justice Department officials, the little-known exchange offered peer-to-peer services and hosted wallets of criminals buying and selling illegal goods.

According to FinCEN, Bitzlato played a role in processing illicit transactions for ransomware actors in Russia, including some connected to the Russian government. The company was also tied to routine transactions with Russian-based Hydra Market, a darknet market targeted by authorities last year.

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• Source: https://www.cryptocompare.com/email-updates/daily/2023/jan/19/