Bitzlato Co-Founder Admits to Laundering $700 Million in Money

After the co-founder of Bitzlato confessed to laundering millions of dollars, there are allegations that the Bitzlato team turned a blind eye to these crimes.

At a hearing in Brooklyn, the Russian co-founder of the virtual currency exchange Bitzlato, Anatoly Legkodymov, registered in Hong Kong, admitted to money laundering charges in an investigation led by the United States Eastern District Attorney’s Office in New York. He was found guilty.

“Today’s indictment of Legkodymov confirms that the cryptocurrency exchange Bitzlato was used as an open turnstile by criminals seeking to exploit the loose controls on illegal money transactions,” said U.S. Attorney Breon Peace.

Peace also added that the vulnerability in Bitzlato’s security controls provided an advantage for criminals.

$700 Million in Cryptocurrency Sent!

Legkodymov was arrested in Miami in January and was charged with illegal money transfer. According to the indictment, Bitzlato was a key accomplice of criminals who sent approximately $700 million worth of cryptocurrency to the Hydra darknet market through its users.

Finally, the prosecution stated that Bitzlato earned over $15 million from ransomware activities and alleged that Legkodymov’s team turned a blind eye to these activities despite being aware that the exchange was being used by criminals.”

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