Crypto exchange Bitzlato founder arrested in Miami

Prosecutors allege Anatoly Legkodymov’s company became a ‘safe haven’ for proceeds of criminal activity

A Russian citizen who founded a cryptocurrency exchange that the Justice Department said had become a haven for criminal activity has been arrested, federal officials said Wednesday.

Anatoly Legkodimov, who lives in China, was arrested in Miami on Tuesday night and is on trial for conducting an unlicensed money transfer business.

The prosecutor said that the Bitzlato cryptocurrency exchange, of which Legkodimov was the majority owner, did not take the necessary anti-money laundering measures, requiring only minimal identity checks from its users. It claims it even allowed them to provide information belonging to 'Straumann Registrants'. People who act as cover for users.

“As a result, Bitzlato has become a safe haven for criminals such as drug dealers and ransomware his group,” said Breon Peace, the federal attorney in Brooklyn where the lawsuit was filed. I'm here. “They knew that if police traced their funds back to Bitzlato, Bitzlato would not be able to reveal the identity of its users.”

The Hong Kong-registered company was established in 2016 and operates worldwide. The Justice Department said Bitzlato has made more than $700 million in cryptocurrency exchanges, directly or through its intermediaries, with users of Hydra Market, a dark web marketplace for drugs, fake IDs, and other illicit products. rice field. The Justice Department confiscated and closed the market last year.

Russian owner of cryptocurrency exchange Bitzlato arrested in Miami.

Assistant Attorney General Lisa Monaco said at a press conference on Wednesday, "Operating offshore or moving servers outside the mainland United States won't protect you." Even if you break or exploit the financial system from a tropical island, you can expect to face criminal justice in a US court."

Monaco's reference to the tropical island appears to be a clear reference to the arrest of Sam Bankman-Fried, the former CEO of bankrupt cryptocurrency firm FTX, in the Bahamas last month.

Legkodimov, 40, was taken into custody Wednesday and it was unclear if he had a lawyer to defend him. The Ministry of Finance has worked with French authorities to identify suspected criminal activity in Bitzlato. This is a sign of global cooperation to clean.