ChainCatcher news, according to Bloomberg, Bitzlato founder Anatoly Legkodymov has been sentenced to 18 months in prison for operating an unlicensed money transfer business and laundering over $700 million in illegal gambling and drug trafficking proceeds.Given that Legkodymov has been detained since his arrest in January 2023, his sentence is now complete, and he will not have to serve any additional time. In December of last year, Legkodymov pleaded guilty, admitting that he had known for years that Bitzlato was used as a channel for darknet transactions, including the notorious drug market Hydra Market, which was shut down by authorities in 2022.Having lived in Russia and Shenzhen, Legkodymov had moved to Pennsylvania, USA, at the time of his arrest. As part of his plea agreement, he also agreed to forfeit his claim to $23 million in cryptocurrency seized by French authorities.

ChainCatcher news, the encrypted trading platform Bitzlato posted a message on its Telegram channel stating that it will temporarily suspend special balance withdrawals and technical support. The purpose is to prepare for and conduct hearings regarding the court hearing on the seizure of user assets, which will be held in France. The company stated: "We are determined and optimistic about this matter."Previously, Anatoly Legkodymov, the Russian founder and major shareholder of Bitzlato Ltd., pleaded guilty, admitting to operating a currency trading business that engaged in illegal money transfers. As part of the plea agreement, Anatoly agreed to dissolve Bitzlato and waive all rights to approximately $23 million in seized Bitzlato assets.

ChainCatcher news, according to official reports, Anatoly Legkodymov, the Russian founder and major shareholder of Bitzlato Ltd., pleaded guilty today in a New York federal court, admitting to operating a currency trading business involved in illegal fund transfers. This charge stems from Anatoly's primary ownership of the cryptocurrency trading platform Bitzlato Ltd., which served as a major conduit for darknet market sellers and ransomware criminals. As part of the plea agreement, Anatoly agreed to dissolve Bitzlato and forfeit all rights to approximately $23 million in seized Bitzlato assets.

ChainCatcher news, Anatoly Legkodymov, the founder of the Russian cryptocurrency exchange Bitzlato, who was arrested in the United States, plans to plead guilty and reach an agreement regarding the ongoing investigation. The two sides are currently in plea negotiations, which they believe may lead to an out-of-court settlement.The FBI accuses Anatoly Legkodymov of managing a remittance business that was not registered in the United States and violating anti-money laundering laws. Investigators are convinced that the founder of the exchange was aware of the illegal source of the funds but deliberately continued to operate while ignoring KYC and anti-money laundering procedures.According to the Telegram channel Baza, Legkodymov's arrival in the United States may be part of an agreement with the FBI, as the total prison sentence he faces according to the charges does not exceed 5 years. (Source link)

ChainCatcher news, according to Bitcoin.com, users of the Russian cryptocurrency exchange Bitzlato can now withdraw a portion of their funds. Since Monday, its customers have been able to use half of their Bitcoin balance. A Bitzlato spokesperson stated that account holders can withdraw up to 50% of their Bitcoin. The minimum withdrawal amount is 0.001 BTC, with a fee of 0.0003 BTC. Users can place withdrawal orders through a Telegram bot, requiring the email address associated with their Bitzlato account. After verification, a code necessary to complete the transfer is generated and sent to that email address.Previously, on January 19, the U.S. Department of Justice took enforcement action against the Russian platform Bitzlato, and Bitzlato co-founder and major shareholder Anatoly Legkodymov was arrested in Miami. Four other members of the Bitzlato team were detained in Europe, while another co-founder, Anton Shkurenko, was released after being questioned in Russia. (source link)

ChainCatcher news, according to CoinDesk, the co-founder of the cryptocurrency exchange Bitzlato, Anton Shkurenko, was released after being briefly detained for questioning in Moscow on February 6. Anton Shkurenko did not disclose the specific detaining department, but he mentioned that he had signed a contract to appear in court when requested by investigators. Therefore, Shkurenko obtained a non-detention order to avoid future arrests. Shkurenko stated that he is a "technical advisor" for Bitzlato, although he was once one of the key holders of the exchange's cryptocurrency wallets, which he allegedly transferred control of to other team members.Earlier reports indicated that the U.S. Department of Justice charged Bitzlato with illegally handling $700 million in funds in January, after which Spanish police arrested the CEO, sales director, and marketing director of the cryptocurrency exchange Bitzlato. (source link)

ChainCatcher news, the Spanish police announced the arrest of the CEO, sales director, and marketing director of the cryptocurrency exchange Bitzlato, due to the company's alleged involvement in money laundering activities.The police operation also included simultaneous raids in France, Portugal, Cyprus, and the United States. A total of 6 people were arrested, all of whom are nationals of Russia and Ukraine. The French police disabled and confiscated the technology used for hosting the cryptocurrency platform. Previously, it was reported that the U.S. Department of Justice took law enforcement action against the Russian trading platform Bitzlato. (source link)

ChainCatcher news, according to The Block, Anton Shkurenko, co-founder of the Hong Kong cryptocurrency exchange Bitzlato, stated that the company plans to resume operations and allow some users to withdraw funds. Earlier this month, Bitzlato was accused of laundering over $700 million, and its servers were seized in a major international operation.Shkurenko mentioned that the police had seized the platform's hot wallet, which contained about 35% of all cryptocurrency user funds at that time. However, Shkurenko stated that the exchange would reopen at an unspecified time and would guarantee that 50% of Bitcoin user funds in Bitzlato wallets could be withdrawn on the same day of the relaunch, with withdrawals for other cryptocurrencies to be rolled out subsequently. (source link)

ChainCatcher news, Binance processed nearly $346 million in funds for the seized cryptocurrency exchange Bitzlato. From May 2018 until Bitzlato's closure, Binance transferred over 20,000 BTC in approximately 205,000 transactions on Bitzlato, valued at about $345.8 million at the time of the transactions.It is reported that the U.S. Department of Justice arrested Bitzlato co-founder Anatoly Legkodymov on January 19, charging him with handling $700 million in illegal funds. The U.S. Treasury Department's Financial Crimes Enforcement Network designated Binance as one of the main trading partners in the Bitzlato illegal funds case. (Reuters)

ChainCatcher news, January 24, the EU police agency Europol stated in a statement that the Russian cryptocurrency exchange Bitzlato is suspected of trading over 1 billion euros in assets related to criminal activities. Of the 2.1 billion euros received by the platform, approximately 46% is related to criminal cases. The company's CEO, CFO, and CMO were arrested in Spain, and two others were arrested in Cyprus and the United States, respectively. A total of 18 million euros in company assets have been seized in Spain, Cyprus, Portugal, and France.Previously, the U.S. Department of Justice stated that the Russian cryptocurrency exchange Bitzlato provided financial support for darknet crimes and would take law enforcement action against it. The company's founder and major shareholder Anatoly Legkodymov was arrested in Miami on January 18. (CoinDesk)

ChainCatcher news, according to Bloomberg, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) wrote in a document that about two-thirds of the largest counterparties for receiving and sending transactions for Bitzlato are related to darknet markets or scams: from May 2018 to September 2022, Binance was the largest counterparty for receiving Bitcoin, followed by the Russian-linked darknet market Hydra and the Russia-based scam TheFiniko in second and third places, respectively. The top three sending counterparties during the same period were Hydra, the Finnish Bitcoin exchange Local Bitcoins, and TheFiniko.In response, a Binance spokesperson wrote in a statement that Binance "has provided significant assistance to international law enforcement partners supporting this investigation, reflecting Binance's commitment to working with global law enforcement partners." (Bloomberg)

ChainCatcher message, SlowMist monitoring data shows that a significant portion of the funds sanctioned on Bitzlato has been identified, including 64.8 BTC, 274 ETH, 3200 LTC, 530 BCH, 385,117 stablecoins (USDT, USDC, DAI), and 1.202 million DOGE, with a total value of approximately 2.56 million USD. (source link)

ChainCatcher News, the U.S. Department of Justice has officially recognized the cryptocurrency exchange Bitzlato as a major money laundering entity related to illegal finance in Russia. Bitzlato's founder and majority owner, Anatoly Legkodymov, was arrested last night in Miami and is scheduled to appear for a hearing this afternoon in the U.S. District Court for the Southern District of Florida. He is accused of operating a money laundering business, violating U.S. regulatory safeguards, including anti-money laundering laws. Additionally, French authorities and the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) are also taking simultaneous enforcement actions.It is reported that Bitzlato is a cryptocurrency exchange registered in Hong Kong and operating globally. Bitzlato has very low identity verification thresholds for users, providing a funding channel for darknet drug trafficking and a range of criminal activities. (Source link)