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Crypto Exchange Bitzlato Processed Over $1 Billion Linked To Criminal Activities: Report

The platform’s infrastructure was shut down in France for allegedly being used for money laundering of criminal assets, and six individuals were targeted for arrest in Cyprus, Spain, Portugal, and the USA.

Bitcoin
Cryptocurrency
Valentin
Valentin

Valentin

March 13, 2023

Europol, the European Union police agency, announced in a statement that Bitzlato, a crypto exchange that recently faced money laundering charges in the U.S., processed around 1 billion euros ($1.08 billion) in assets linked to criminal activities. 

Europol added that targeting crypto exchanges as facilitators of crime is becoming a crucial priority in the fight against cybercrime. The statement also mentioned that the assets involved multiple cryptocurrencies, such as bitcoin (BTC), Dash, Litecoin, as well as U.S. dollars and Russian rubles.

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Europol, the EU agency that coordinates activities among national law enforcement authorities within the bloc, announced that several senior executives of the company including CEO, Financial Director, and Market Director were arrested in Spain, along with one additional arrest in Cyprus and one in the U.S.

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The announcement came after the U.S. Department of Justice announced that it had shut down the Hong Kong platform of the company and taken its founder, Anatoly Legkodymov, into custody in Miami.

The statement also mentioned that house searches were conducted in Spain, Cyprus and Portugal; digital infrastructure was taken down in France; and 18 million euros ($19.5 million) worth of cryptocurrency, vehicles and electronics were seized, and 50 million euros ($54.3 million) worth of crypto were frozen at other exchanges.

Overall results

In the statement from Europol, all results in the case of Bitzlato so far are listed:

  • “5 individuals arrested so far (1 in Cyprus, 3 in Spain and 1 in the US);
  • 1 individual questioned in Portugal;
  • The main administrator arrested in the US;
  • CEO, Financial director and Marketing director arrested in Spain;
  • 8 house searches (4 in Spain, 1 in Cyprus, 2 in Portugal, 1 in US);
  • Takedown of the digital infrastructure of the service, enabling further analysis and investigation;
  • Seizures include crypto wallets worth about EUR 18 million in cryptocurrency at the time of writing, vehicles and electronic equipment;
  • 100+ accounts at other crypto exchange frozen, involving a total of EUR 50 million.”

Source: https://www.europol.europa.eu/media-press/newsroom/news/bitzlato-senior-management-arrested

On the day of the operation, Europol deployed 13 experts (10 in France, 1 in Cyprus, 1 in Spain and 1 in Portugal) to support the national investigators in other countries involved in the activities. Europol assisted in coordination related to cryptocurrency analysis, cross-checking operational information with Europol’s databases, and operational analysis.

At the time, over 3,500 bitcoin addresses and over 1,000 Bitzlato user details were found to have links to various criminal cases reported in Europol’s systems. Further investigative activities are expected to be triggered by the analysis of this data and other related cases.