Cryptocurrency exchange whose directors were arrested for helping Russians fined $ 20 million

On Monday, January 23, representatives of Europol announced the confiscation of $ 19.5 million from the Bitzlato cryptocurrency exchange. The Spanish authorities arrested five people, including the crypto exchange’s CEO, CFO, and marketing director. Two more executives were detained in Cyprus and the United States. In addition, law enforcement officers searched eight private homes of top executives and froze more than 100 accounts totaling $ 50 million. Investigators from Belgium, Cyprus, Portugal, Spain, and the Netherlands participated in the operation.

The Bitzlato cryptocurrency platform allowed converting digital currencies into Russian rubles. Experts estimate that the platform could have made a profit of $ 2.1 billion in this way.

on January 17, Bitzlato founder Anatoly Legkodymov was accused of laundering $ 700 million on the darknet. After that, the platform’s team announced the hacking and withdrawal of part of the funds. Later, Bitzlato announced the suspension of the service.

According to the US Deputy Attorney General, the Bitzlato exchange was a «critical financial resource» for the black market in the darknet — the Russian Hydra marketplace. Overall, since 2021, Hydra has accounted for 80% of the global darknet market revenue. The black marketplace of the terrorist state was used to trade in fake documents, stolen databases, banned substances, weapons and other illegal goods.

«TheDepartment of Justice has dealt a significant blow to the cryptocurrency crime ecosystem,» said the Attorney General. «Our actions send a clear message to fraudsters: whether you break our laws in China, Europe, or abuse our financial system on a tropical island, expect to face justice for your crimes in a United States courtroom.»