©Reuters.
WASHINGTON – Cryptocurrency platform Bitzlato has halted bitcoin transactions following a crackdown by French authorities, which included seizing users’ assets. The recent legal issues stem from an investigation that revealed the platform’s role in laundering more than $700 million linked to illicit activities.
Bitzlato founder Anatoly Legkodymov was arrested for his involvement in money laundering operations. The arrest, which took place between January 17 and 18, led to Legkodymov agreeing to shut down Bitzlato and confiscate assets worth approximately $23 million.
Prior to these events, Bitzlato had attempted to overcome legal difficulties by offering limited withdrawal options to its users on March 20, and later, on September 14, the platform increased its withdrawal limit. However, these measures have been overshadowed by the significant legal actions filed against the company.
Investigations into Bitzlato’s activities revealed that the platform processed transactions originating from Hydra Market, a popular darknet marketplace, and entities involved in ransomware schemes. The seizure by authorities of Bitzlato’s cryptocurrency holdings, including its “hot wallet”, dealt a severe blow to the platform’s activities.
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