CEO, Sales Executive And Marketing Director Of Bitzlato Arrested By Spanish Police: Report

Key Points:

• The CEO, sales executive, and marketing director of Hong Kong cryptocurrency exchange Bitzlato have all been detained by Spanish police.
• The exchange’s secrecy made it the go-to site for criminal groups looking to use cryptocurrencies as a means of money laundering.

Spanish authorities have detained the CEO, sales executive, and marketing director of Hong Kong cryptocurrency exchange Bitzlato, according to a February 2 report by Turkish news agency Anadolu.

According to the report, six Russian and Ukrainian citizens connected to the exchange have now been detained as a result of joint efforts by France, Portugal, Cyprus, and the US, including the CEO.

As a result of the illicit operation that law enforcement discovered in recent months, Bitzlato has been a popular topic of discussion in the bitcoin market. According to Spanish authorities, the exchange’s reputation among criminal groups looking for ways to use digital assets for money laundering was boosted by its anonymity.

According to Spanish authorities, the exchange’s secrecy made it the platform of choice for criminal groups looking to use cryptocurrencies as a means of money laundering. Authorities confiscated luxury vehicles, cash, cellphones, digital assets worth $19.8 million (18 million euros), luxury automobiles, and other goods connected to the inquiry. They also froze over 100 exchange accounts.

The announcement comes only two days after co-founder Anton Shkurenko said in an interview that after authorities confiscated about 35% of customers’ cash stored in the exchange’s hot wallets, 50% of the Bitcoin housed in Bitzlato wallets may be removed the same day the exchange reopens. Shkruenko added that the new Bitzlato would be based in Russia and beyond of reach of law enforcement officials in relation to this.

The US Department of Justice said on January 18 that it would pursue enforcement action against the exchange. Noting that the Bitzlato exchange helped cybercriminals launder over $700 million via the absence of KYC and anti-money laundering compliance.

After the disclosure, Bitzlato’s website was taken down, and its cash was confiscated by law enforcement. Anatoly Legkodymov, a co-founder of the exchange and a Russian citizen, was detained in Miami the day after the announcement.

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Harold

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