Bitzlato Founder Confesses to $700M Illicit Funds Handling
Anatoly Legkodymov, a key figure linked to Bitzlato, a Hong Kong-based virtual currency exchange, admitted in a U.S. court to overseeing a money-transferring operation that handled around $700 million in unauthorized funds.
During the court proceedings overseen by U.S. District Judge Eric Vitaliano in Brooklyn, Legkodymov acknowledged his awareness of Bitzlato users engaging in the transfer of cryptocurrency from illicit sources, including ransomware proceeds from Hydra Market.
Hydra Market, an online hub for narcotics and money laundering, was shut down by U.S. and German law enforcement in April 2022. The case highlights ongoing efforts by U.S. authorities to combat fraudulent practices within the cryptocurrency space.
Legkodymov, based in Shenzhen, faces potential imprisonment of up to five years, pending sentencing. He has been in custody since his January arrest in Miami and is held at the Metropolitan Detention Centre in Brooklyn.
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Bitzlato’s website is inactive, seized by French authorities in a multinational operation. The case also reveals connections between Bitzlato and Binance, raising concerns about illegal financial activities within major cryptocurrency exchanges.
In April, Russia’s embassy called for Legkodymov’s release, adding to diplomatic tensions, but recent proposals for prisoner exchanges were rejected by Russia, including the release of Americans wrongfully detained, like Wall Street Journal reporter Evan Gershkovich.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
