JAKARTA - Anatoly Legkodymov, founder of Hong Kong-listed crypto exchange Bitzlato, was arrested in Miami on Wednesday January 18 and charged with running an unregistered remittance business that violates anti-money laundering laws and facilitates the delivery of illegal funds, the United States Department of Justice (DOJ) announced on January 18.
The Russian Legkodymov is the majority shareholder of Bitzlato and controls the exchange. If found guilty, Legkodymov could face a maximum prison sentence of 5 years. He is scheduled to be indicted at the US District Court for the Southern District of Florida on January 18.
In addition, French authorities in collaboration with Europol and authorities in Spain, Portugal and Cyprus, dismantled Bitzlato's digital infrastructure. The US Treasury Department's French authorities and the Financial Crime Enforcement Network (FinCEN) took joint law enforcement action against the exchange.
The case was jointly charged by Maya's World Security and Crime Department of the United States Attorney's Office for the Eastern District of New York and the National Crypto Currency Enforcement Team (NCET).
"Today's action sends a clear message: whether you violated our laws from China or Europe - or abused our financial system from a tropical island - you must be held accountable for your crimes in the United States courtroom," Deputy Attorney General Monaco said at a press conference, quoted by CryptoSlate.
Bizlato's partner on Darknet
Hydra acts as a major illegal darknet marketplace that facilitates the sale of illegal drugs, stolen financial information, and other crimes until they are finally confiscated and closed in April 2022. According to complaints against Legkodymov, Hydra is Bitzlato's biggest partner while Bitzlato is the second largest crypto transaction destination for Hydra users.
This news shocked the crypto world because Bitzlato is known as one of Hong Kong's leading crypto exchanges. The case also shows that the US government will not hesitate to pursue criminals who commit illegal activities in the crypto world, even if they are abroad.
Information revealed in the complaint shows that Bitzlato is thought to have been used as a safe place for criminals to exchange their crimes into cryptocurrencies. Authorities also alleged that Bitzlato had loose or non-existent know-your-customer (KYC) requirements, which allowed the use of false identities when registering on the exchange.
Meanwhile, French and US authorities are working closely with Europol and authorities in Spain, Portugal and Cyprus, dismantling digital Bitzlato infrastructure and taking joint law enforcement action against the exchange.
This is another case that suggests that the US government will not hesitate to pursue criminals who commit illegal activities in the crypto world, even if they are abroad. Today's action sends a clear message: whether you violated our laws from China or Europe - or abused our financial system from a tropical island - you must be held accountable for your crimes in the United States courtroom.
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