The co-founder of Bitzlato has indicated that they would make it possible for users to withdraw fifty percent of their Bitcoin holdings from their Bitzlato wallets on the same day we launch.
According to the most recent information, the crypto currency exchange that has since gone out of business, Bitzlato, is considering reappearance in the market.
Earlier this month, an investigation was conducted against the crypto currency exchange situated in Hong Kong. As part of the investigation, the servers used by Bitzlato were confiscated.
In a recent interview (1), one of the co-founders of Bitzlato said that the firm intends to resume operations and make it possible for users to withdraw some of their assets in increments.
Forklog has provided a translation and summary of a YouTube interview conducted in Russian. Bitzlato co-founder Anton Shkurenko stated that the authorities took the exchange's hot wallets, which at the time included 35 percent of user assets in all crypto currencies.
Shkurenko has also announced that the marketplace would resume at a time that has yet to be defined. And he claimed with "100% assurance" that "we would allow 50% of user monies in bitcoin housed in Bitzlato wallets to be retrieved on the same day we launch."
This was about the fact that the user funds will be available in bitcoin, and additional crypto currencies will be introduced in stages."
Bitzlato was arrested in the middle of January 2023 and accused of laundering approximately 700 million dollars in illicitly obtained cash related to Russian organized crime.
Recently, law enforcement activities led to the arrest of Anatoly Legkodymov, one of the co-founders of Bitzlato, along with many other officials from the company. Legkodymov is a Russian national currently residing in China and is the primary owner of Bitzlato. However, the city of Miami was the location of his arrest.
According to Europol, the law enforcement arm of the European Union, Bitzlato had traded more than one billion dollars in assets that were connected to illegal activity.
Binance Handled Major Amounts of Transactions for Bitzlato
According to the most recent news on the market, the crypto currency exchange Binance has processed an astounding 350 million dollars for Bitzlato.
As per the information produced by the company Chainalysis, which specializes in blockchain analytics, the crypto currency exchange Binance has handled more than 20,000 Bitcoins, including over 205,000 trades for Bitzlato since 2018.
More than 175 million dollars was moved from Bitzlato to the crypto currency exchange Binance, making Binance one of the most significant recipients of the money. A stunning $90 million worth of transactions occurred between the two exchanges in August 2021.
Based on a statement made by Binance, the company has offered "significant assistance" to FinCEN to help the agency's inquiry further. LocalBitcoins, a cryptocurrency exchange in Finland, has said unequivocally that it has never had "any form of collaboration or contact" with Bitzlato. It is too soon to say whether Bitzlato will come back at some point in the future.