Bitzlato

Bitzlato was an exchange that didn’t require its users to complete KYC or AML checks, and managed to launder more than $700m in funds. It has now been shut down by the US Department of Justice.

Crime in the world of crypto has been rampant as of late, and many multi billion dollar companies have suffered a complete meltdown thanks to the volatility of the markets.

However, the US Department of Justice has finally managed to shut down a company before it imploded organically, which they have been celebrating as a huge success.

Before the announcement yesterday, there was a lot of speculation over exactly who the Department of Justice was interested in and why, with speculation rife that the announcement could have had something to do with the alleged $8 billion that Binance has been accused of money laundering.

However, it soon transpired that the real focus of their interests was an exchange that most crypto natives are completely unfamiliar with: a Russian peer to peer exchange known as Bitlazo.

US Department of Justice shuts down Bizlato exchange

The US Department of Justice made a speech yesterday to declare that they had shut down the Bitzlato exchange.

The Bitzlato exchange was a peer to peer Russian exchange that didn’t require its users to complete any KYC or AML checks, which is something that the authorities frown upon.

KYC and AML checks are important to ensure that funds have not been acquired in an illicit manner, and for exchanges to know who they are doing business with in order to prevent money laundering.

A series of international partners helped the US to achieve this

The US DOJ wasn’t working alone in their endeavours to shut down the Bitlazo exchange, and had partners from law enforcement agencies all across the world in order to achieve their goals.

Significantly, the exchange was working with partners from France, Spain and Germany, all of which had previously raised concerns about the lack of transparency on the exchange, and who had traced transactions made via the Hydra market back to it.

The founder has been charged with $700m of financial crimes

The founder of the Bizlato exchange has been charged with $700m worth of financial crimes.

Most significantly, the exchange has been accused of being a hotspot for money laundering from dark net drug sites such as Hydra,

Anatoly Legkodymov, a Russian living in China who was in charge of the exchange, has been arrested in Miami following the investigation, after he tailored the platform to be used by people that he personally described as “crooks”.

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