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Spanish authorities, in conjunction with several other countries, have arrested the CEO, sales director and marketing director of cryptocurrency platform Bitzlato for their alleged involvement in money laundering.
What happened: A total of six people were arrested, all of Russian and Ukrainian nationality. The technology used for the platform was also disabled and seized by French police.
Bitzlato was known for its anonymous transactions and was said to be one of the main channels for global money laundering via cryptocurrency.
The platform first started as a Telegram bot to buy and sell cryptocurrencies and eventually expanded and rebranded as Bitzlato, launching a peer-to-peer crypto exchange app in 2020.
Due to its anonymous nature, the platform has quickly become a favorite of criminal organizations, especially those involved in cybercrime, for its ability to launder money.
Cybercrime in the world of digital assets reached new heights in 2022, with cybercriminals stealing an estimated $3.8 billion worth of cryptocurrencies, according to a recent report by blockchain forensics firm, Chainalysis.
Also Read:Charlie Munger Demands US Cryptocurrency Ban: Calls It a ‘100% House Edge Gambling Contract’
One of the most important findings of the report was that DeFi platforms were the primary target of cybercriminals, accounting for 82% of all stolen cryptocurrencies, or $3.1 billion in total.
In recent raids on Bitzlato executives, authorities recovered $18 million worth of cryptocurrency, luxury vehicles, cash, smartphones and other technology related to the investigation.
Over 100 cryptocurrency accounts were also blocked, disrupting the cybercrime ecosystem and hampering the ability to launder money.
The platform’s co-founder, Anatoly Legkodymov, was also arrested in Miami in January and the US Department of Justice accused the platform of lacking compliance with Know-Your-Customer and Anti-Money Laundering, which allegedly helped cybercriminals launder over $700 million through Bitzlato.
The stock exchange’s websites were shut down and part of the funds were seized by the police.
Read Next:Clash of the Crypto World Titans: The Story of Sam Bankman-Fried and CZ Zhao is Now a Documentary
Photo: FOTOGRIN via Shutterstock
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