Bitzlato founder and majority owner Anatoly Legkodymov has been arrested on claims of money laundering. According to reports issued by the U.S. Department of Justice.
Anatoly Legkodymov’s crypto exchange was allegedly involved in illicit activities and failed to pass the legal requirements to combat crime.
Bitzlato exchange allegedly linked to illicit activities
The U.S. Department of Justice issued a report on the arrest of Anatoly Legkodymov, a Russian national who is the majority shareholder and founder of a Hong Kong-based cryptocurrency exchange. According to the DoJ, Anatoly Legkodymov’s crypto exchange allegedly supported criminal activities, including drug trafficking and money laundering schemes.
The exchange is believed to have been connected to Hydra Market, an online illicit narcotic marketplace that prosecutors believe was linked to criminal activities such as money laundering, drug trafficking, sales of illegally acquired financial information, and fraudulent identities.
The law enforcement behind Anatoly Legkodymov’s arrest believed the founder was fully aware of the exchange’s ties with the dark vices. In the DoJ-issued document, the founder and other senior managers of the exchange had a discussion.
They identified that most of the firm’s users were “crooks” referring to drug addicts, drug traffickers, and money launderers. In one document pulled from the exchange’s portfolio, a senior executive allegedly mentions that the firm should only do away with drug trafficking and leave other criminal activities running so as not to cripple the firm’s operations.
Anatoly’s trial begins
Anatoly Legkodymov is expected to be arraigned in court today in the U.S. District Court for the Southern District of Florida.
As part of the process to fish out crypto-related crimes, Deputy Attorney General Monaco stated that U.S. regulators are constantly working with other regulators worldwide to bring perpetrators to justice according to the law, regardless of the country or island the suspects operate from.
The comment was likely referring to the recent FTX debacle that saw Sam Bankman Fried arrested in the Bahamas Islands and charged for fraud and embezzlement of customer deposits.