Security News > 2023 > January > Bitzlato Crypto Exchange Founder Arrested for Aiding Cybercriminals

The U.S. Department of Justice on Wednesday announced the arrest of Anatoly Legkodymov, the cofounder of Hong Kong-registered cryptocurrency exchange Bitzlato for allegedly processing $700 million in illicit funds.

According to court documents, Bitzlato is said to have advertised itself as a virtual currency exchange with minimal identification requirements for its users, breaking the rules requiring the vetting of customers.

The U.S. Treasury Department's Financial Crimes Enforcement Network described Bitzlato as a "Primary money laundering concern" that enabled ransomware actors such as Conti to launder the ill-gotten gains.

"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," U.S. Attorney Breon Peace said.

Blockchain analytics firm Chainalysis, in February 2022, revealed that Bitzlato "Received $206 million from darknet markets, $224.5 million from scams, and $9 million from ransomware attackers."

In all, Bitzlato is estimated to have received $2.5 billion in cryptocurrency between 2019 and 2023, 53% of which originated from illegal and risky sources.

News URL

https://thehackernews.com/2023/01/bitzlato-crypto-exchange-founder.html