China-based Anatoly Legkodymov was arrested in Miami on Tuesday evening and was scheduled to appear in court on a charge of operating an unlawful money transfer firm.
Legkodymov is the founder of the crypto exchange Bitzlato.
Bitzlato is a Company incorporated in Hong Kong that was a “key financial resource” for the Hydra dark web market, the biggest and most established of its kind.
On the other hand, the Russian source claims that Legkodymov owns 73.4% of Bitzlato.
Bitzlato has a high-floor office in Moscow’s Federation Tower skyscraper, which processed $100,000 or more deals.
According to reports, Legkodymov and his principal Bitzlato partner are also associated with the Russian distributor of crypto mining equipment A-HVT.
Legkodymov has a lengthy and troubled career in the cryptocurrency sector spanning more than a decade.
He made his first post on the BitcoinTalk forum in 2011, describing the circumstances that resulted in the loss of more than 50 BTC.
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Why Did Anatoly Legkodymov, Bitzlato Crypto Founder Arrested?
Anatoly Legkodymov, Bitzlato Crypto founder and senior Executive, was arrested on Tuesday in Miami.
He was charged with ordering the business to send money obtained from cybercrimes and other illegal conduct intentionally.
Legkodymov did not place the necessary anti-money laundering safeguards and only required minimal user identification.
Anatoly Legkodymov, Bitzlato Crypto founder and senior Executive, was arrested on Tuesday in Miami (Source: Periodicocubano)
He even allows them to provide information belonging to “straw man registrants,” people acting as a cover for the users.
Breon Peace, the U.S. attorney in Brooklyn, where the complaint was obtained, claimed that Bitzlato became a haven for criminals, like drug dealers and ransomware gangs.
They knew that Bitzlato would be unable to reveal its users’ real identities when the authorities tracked their payments to Bitzlato.
According to Deputy Attorney General Lisa Monaco, Bitzlato, a Company incorporated in Hong Kong, was a “key financial resource” for the Hydra dark web market, the biggest and most established of its kind.
Anatoly Legkodymov Charged With $700m Financial Crimes
Anatoly Legkodymov was charged with operating Bitzlato Ltd., an unauthorized money-transfer business.
As the U.S. pursues criminal suspects online, a Russian, Anatoly, was charged with money laundering using a cryptocurrency exchange that reportedly concealed over $700 million in unlawful gambling and drug sales earnings.
Investigators claim that Legkodymov and other Company officials discussed how drug traffickers and other criminals were utilizing their platform to conceal their gains, even referring to some of the funds sent through their portals as “dirty money.”
For this reason, Legkodymov, a founder, faces a maximum sentence of 5 years in jail if found guilty of the crime.
A 40-year-old founder was being held on Wednesday, and it was unknown if he had a representative who could speak for him.
Anatoly Legkodymov was charged with operating Bitzlato Ltd., an unauthorized money-transfer business (Source: CBCNews)
Prosecutors claim that to escape detection; the Company even let users submit fictitious registrant information.
As per the investigators, drug traffickers & online criminals were drawn to Legkodymov and his business because of their anonymity.
Assistant Attorney General Kenneth Polite, in charge of the Justice Department’s Criminal Division, announced the charges and arrest.
Polite noted that the international investigation was a significant step in the federal government’s efforts to stop illegal activity throughout the cryptocurrency ecosystem.
Not to mention, the treasury department collaborated with French law enforcement to pinpoint Bitzlato’s alleged illicit activity, which U.S. officials claimed was evidence of international collaboration to remove dishonest players from the cryptocurrency marketplaces.
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