In the ongoing regulatory action against Bitzlato, Europol reports seizing $19.5 million worth of crypto currency and arresting five individuals.
Recent events have resulted in Europol, the European Union Agency for Law Enforcement Cooperation, taking an additional crucial step in their ongoing legal efforts against Bitzlato.
According to Europol (1), a major undercover operation across Europe and the United States led to the confiscation of more than $19 million worth of digital currency.
Additionally, according to the law enforcement office of the European Union, the combined investigation resulted in the arrest of five people with connections to Bitzlato.
One of these people is Anatoly Legkodymov, the creator of the problematic crypto currency exchange. He was taken into custody in Miami a week ago.
Europol disclosed that authorities blocked over a hundred accounts at various crypto currency exchanges, and these accounts held a total of fifty million euros. In addition, it has been stated that officials from the United States attempted to confiscate Bitzlato's servers because they allegedly assisted and abetted illegal Russian financial activity.
Europol not only took hold of crypto wallets carrying $19.5 million but also gave insight into questionable practices being conducted by Bitzlato.
Per the allegations made by the federal agency, about 46% of the assets, or $1.09 billion, that were traded on the exchange were connected to illegal activity.
An investigation conducted by Europol found that Bitzlato had received more than 2.1 billion euros worth of crypto currencies, including Bitcoin, Dash, and Dogecoin.
Europol said further that the troubled crypto currency business had changed a significant portion of the cash in issue into Russian rubles.
Most suspicious transactions are tied to businesses sanctioned by the Office of Foreign Assets Control. Other questionable transactions include those linked to cyber frauds, embezzlement, malware, and content relating to child abuse.
Recently the Bitzlato Founder Was Arrested
The most recent Europol development comes on the heels of the arrest of Bitzlato's founder in the United States last week.
On Tuesday night in Miami, FBI agents detained Legkodymov on suspicion that he had laundered around 700 million dollars. The Department of Justice had more significant intentions to bring down a prominent money laundering organization, and the arrest of the creator of Bitzlato was a component of those preparations.
In addition, Monaco brought up the long arm of US government regulations surrounding financial compliance. According to her, lawbreakers would be held accountable for their actions in the United States even if their bases of operations were located in other countries.
Additionally, Monaco asserted that the arrest of Legkodymov would prevent Bitzlato from providing services to criminals with ties to Russia. After its creator was arrested in the United States, the crypto currency exchange essentially ceased operations.
According to the Department of Justice, Legkodymov oversaw a money-transfer company that violated the laws governing the prevention of money laundering. In addition, the federal police department asserts that the Russian crypto leader was involved in the movement of illegal cash related to Russia.
After being apprehended, Legkodymov made his first court appearance on January 18 in the United States District Court of Florida. It is unknown what accusations his Bitzlato partners may face in Europe now. Legkodymov had been residing in China before his arrest.