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The Bitzlato announcement from the DOJ is so bizarre. The DOJ worked for over a year to shutdown a random tiny Russian exchange while FTX was litterally a multi The Justice Department just shut down little-known crypto exchange Bitzlato and arrested its Russian founder in what authorities claim is a huge blow to crypto crime On Janu, the US DOJ issued a statement revealing that the founder and majority shareholder of Bitzlato Ltd, Anatoly Legkodymov, had been charged with “Unlicensed Money On Janu, the US Department of Justice (DOJ) and US Treasury Department (Treasury) held a joint midday press event announcing the takedown of Bitzlato, a China The DOJ alleges that Bitzlato facilitated more than $700 million in transactions involving illicit funds from , but at the time of the live stream, Bitzlatos’ Hydra Market users exchanged more than $700 million in cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shuttered by The U.S. Department of Justice (DOJ) says that Legkodymov, the founder of crypto exchange Bitzlato admitted to operating an unlicensed money-transmitting business at Noncustodial peer-to-peer crypto exchange Bitzlato was little known to some before the United States Department of Justice (DOJ) enforcement action against it on Jan.

Bitcoin, Bitzlato, and the DOJ: What Just Happened? A Deep Dive

On January, the US Department of Justice (DOJ) and US Treasury Department (Treasury) held a joint midday press event announcing the takedown of Bitzlato, a China-based cryptocurrency exchange. This action has sent ripples through the crypto world, leaving many wondering: what is Bitzlato, and why is the DOJ involved?

The Bitzlato Shutdown: Key Details

The Justice Department just shut down little-known crypto exchange Bitzlato and arrested its Russian founder in what authorities claim is a huge blow to crypto crime. Noncustodial peer-to-peer crypto exchange Bitzlato was little known to some before the United States Department of Justice (DOJ) enforcement action against it on Jan. The DOJ alleges that Bitzlato facilitated more than $700 million in transactions involving illicit funds from various sources.

Who is Bitzlato Founder Anatoly Legkodymov?

On Janu, the US DOJ issued a statement revealing that the founder and majority shareholder of Bitzlato Ltd, Anatoly Legkodymov, had been charged with “Unlicensed Money. The U.S. Department of Justice (DOJ) says that Legkodymov, the founder of crypto exchange Bitzlato admitted to operating an unlicensed money-transmitting business.

Bitzlato\'s Alleged Connection to Illicit Activities

Hydra Market users exchanged more than $700 million in cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shuttered by authorities. This alleged connection to the darknet marketplace Hydra, known for illegal goods and services, is a major reason for the DOJ\'s intervention.

Why the Bitzlato Announcement Feels "Bizarre"

The Bitzlato announcement from the DOJ is so bizarre to some because the DOJ worked for over a year to shutdown a random tiny Russian exchange while, according to some observers, FTX was "literally a multi-billion dollar fraud site." This perceived disparity in focus has fueled debate within the crypto community.

The DOJ\'s Statement and Next Steps

The DOJ maintains that the Bitzlato takedown is a significant victory in combating crypto-related crime. However, the legal proceedings against Legkodymov are ongoing, and the full impact of Bitzlato\'s shutdown on the crypto landscape remains to be seen.

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