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Bitzlato's co-founder is arrested and charged for processing $700m in financial crimes

20/01/2023

US Authorities have seized cryptocurrency exchange Bitzlato and arrested its co-founder, accusing the firm of fuelling a "high-tech axis of crypto crime".

The US Department of Justice charged Anatoly Legkodymov, a Russian national living in China, with running a business that catered to what he once described as "crooks".

They said Bitzlato processed more than $700m (£567m) in illicit funds, breaking the rules designed to thwart money laundering.

Mr Legkodymov was arrested in Miami.

  • "Institutions that trade in cryptocurrency are not above the law, and their owners are not beyond our reach," US Attorney Breon Peace said at a press conference on Wednesday, announcing the arrest.
  • "As alleged, Bitzlato sold itself to criminals as a no-questions-asked cryptocurrency exchange and reaped hundreds of millions of dollars’ worth of deposits as a result. The defendant is now paying the price for the malign role that his company played in the cryptocurrency ecosystem."

Since 2018, the Hong Kong-registered exchange had processed about $4.5bn worth of cryptocurrency transactions, according to the complaint.

The firm required minimal identification from its users, allowing it to become a "haven for criminal proceeds and funds intended for use in criminal activity", prosecutors said.

They alleged that the firm was aware of the issues, citing an internal document that described Bitzlato as handling "dirty money" without standard customer-vetting procedures.

Authorities said the firm was closely connected to Hydra Market, a darknet marketplace for drugs, money laundering and stolen financial information that international authorities shut down last year.

Bitzlato claimed it did not accept US customers but prosecutors said it in fact did "substantial" business with Americans.

US authorities worked with law enforcement in France and other countries on the operation.

 

SOURCE

https://www.bbc.co.uk/news/business-64322576

 

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As well as owning and publishing Comsure's copyrighted works, Comsure wishes to use the copyright-protected works of others. To do so, Comsure is applying for exemptions in the UK copyright law. There are certain very specific situations where Comsure is permitted to do so without seeking permission from the owner. These exemptions are in the copyright sections of the Copyright, Designs and Patents Act 1988 (as amended)[www.gov.UK/government/publications/copyright-acts-and-related-laws]. Many situations allow for Comsure to apply for exemptions. These include 1] Non-commercial research and private study, 2] Criticism, review and reporting of current events, 3] the copying of works in any medium as long as the use is to illustrate a point. 4] no posting is for commercial purposes [payment]. (for a full list of exemptions, please read here www.gov.uk/guidance/exceptions-to-copyright]. Concerning the exceptions, Comsure will acknowledge the work of the source author by providing a link to the source material. Comsure claims no ownership of non-Comsure content. The non-Comsure articles posted on the Comsure website are deemed important, relevant, and newsworthy to a Comsure audience (e.g. regulated financial services and professional firms [DNFSBs]). Comsure does not wish to take any credit for the publication, and the publication can be read in full in its original form if you click the articles link that always accompanies the news item. Also, Comsure does not seek any payment for highlighting these important articles. If you want any article removed, Comsure will automatically do so on a reasonable request if you email info@comsuregroup.com.  

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