US DOJ Announces International Cryptocurrency Enforcement Action Against Bitzlato

The US DOJ and other authorities have announced a major international cryptocurrency enforcement action against the cryptocurrency firm, Bitzlato. On January 18th, 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 exchange.

According to Deputy Attorney General Lisa Monaco, the Hong Kong-based platform Bitzlato has been disrupted by U.S. authorities. The DOJ partners with global authorities on crypto enforcement. Deputy Attorney General Lisa Monaco announced on Jan. 18 that she had taken enforcement actions against Bizlato in coordination with France. Including the action against Bitzlato.

The platform’s founder, Anatoly Legkodymov, who administered Bitzlato from Miami, is charged with money transmitting violations. He is accused of enabling criminals to launder illicit funds through the exchange.

The U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) issued an order pursuant to Section 9714(a) of the Combating Russian Money Laundering Act of 2019 targeting Bitzlato.

Hydra Market users exchanged more than $700 million in cryptocurrency with Bitzlato, either directly or through intermediaries, until Hydra Market was shuttered by U.S. and German authorities. This highlights the significant role Bitzlato played in facilitating illicit financial activity.

This international cryptocurrency enforcement action against Bitzlato sends a clear message that the U.S. DOJ, in partnership with global allies, is committed to cracking down on cryptocurrency platforms that facilitate criminal activity and money laundering. The hints of further actions are apparent as authorities continue to investigate and prosecute individuals and entities involved in illicit cryptocurrency operations.