Regulations News

The U.S. DOJ arrested the Russian founder of unknown Bitzlato exchange

Yesterday, the DOJ had announced that they would be making an announcement later, a practice usually seen from crypto projects. When the announcement came, we all learned about an unknown crypto exchange registered in Hong Kong, named Bitzlato.

Supposedly, the arrest of its founder in Miami was the result of months of international investigations into the exchange for money laundering and facilitating crimes. Reportedly $700 million of illicit funds were processed, coming from Russian darknet marketplace Hydra, among others. The exchange failed to implement KYC processes, allowing for criminals to access the exchange to launder the money.

Binance was also named by FinCEN as a top counterparties, but the exchange declared they provided assistance in the investigation. FinCEN also stated that significant connections existed between Bitzlato and operations tied to Russia direclty.

Now, the crypto community is left wondering why those institutions focused on such an unknown exchange while letting FTX run its operations freely, leading to the loss of billions of customer funds.

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Greetings, I go by the name of Flavien - a devoted supporter of cryptocurrency and a tech aficionado who has been keeping track of the developments in the world of blockchain and digital currencies since 2019. The potential of decentralized digital currencies to revolutionize our financial systems has captivated me, and I'm constantly exploring the most recent trends and advancements in this ever-evolving industry. As a content creator for Krypto Channel, my aim is to deliver informative and engaging articles that shed light on all aspects of the crypto world. Whether you're a seasoned investor or simply curious about blockchain technology, I am here to keep you updated on the latest happenings and trends. Being part of this lively and dynamic community is an honor, and I am thrilled to share my passion for cryptocurrency and blockchain with all of you.
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