Jan 19, 2023 at 11:29Binance, the behemoth of crypto exchanges, found themselves in hot water as they were called out by the Feds for their alleged involvement in a $700 million money laundering scheme alongside the obscure exchange, Bitzlato.
Bitzlato’s little black book is filled with some questionable characters, as the top three recipients of their BTC from May 2018 to September 2022 are: (As uncovered by the Treasury’s Financial Crimes Enforcement Network (FinCEN).
- Binance
- The Russia-connected darknet market Hydra
- Russia-based Ponzi scheme “TheFiniko.”
“Binance is pleased to have provided substantial assistance to international law enforcement partners in support of this investigation. This exemplifies Binance’s commitment to working collaboratively with law enforcement partners worldwide,” a Binance spokesperson said.
FinCEN has officially dubbed Bitzlato a “primary money-laundering concern,” a label that usually acts as a kiss of death for a business’s access to the global financial system.”
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The order from FinCEN, effective February 1, 2023, prohibits any financial institution from transmitting funds involving Bitzlato. The exchange was found to have played a key role in handling dirty money for Russian ransomware actors.
Bitzlato’s Russian founder, Anatoly Legkodymov, took his illicit fund processing to the sunny beaches of Miami, where he was arrested on Jan 18, 2023, for allegedly handling $700 million in shady funds.
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