US authorities have arrested a Russian citizen, founder and majority owner of the Bitzlato cryptocurrency exchange for a scheme to transfer illegally obtained money and money laundering. This is stated in the message of the US Department of Justice.

According to the Department of Justice, Bitzlato processed more than $700 million in illegal funds, including proceeds from ransomware and drug trafficking, which violated US law..

Arrested Anatoly Legkodimov, a Russian living in Shenzhen, China.

Cryptocurrency exchange Bitzlato required minimal identification from its users, noting that neither selfies nor passports are needed to make payments.. In cases where Bitzlato asked users to provide identification information, the exchange repeatedly allowed the use of data belonging to “hacked” people.. The Ministry of Justice is convinced that the owner of the exchange acted in this way quite consciously.

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Bitzlato's largest counterparty in cryptocurrency transactions was Hydra Market (Hydra), the world's largest anonymous illegal online market for drugs, stolen financial information, false documents and money laundering services.. In April 2022, Hydra was shut down by US and German law enforcement..

According to the Department of Justice, Hydra users have exchanged more than $700 million in cryptocurrency directly or through intermediaries using Bitzlato.. In addition, Bitzlato also received over $15 million from ransomware..

If Legkodymov is found guilty, he faces a maximum sentence of five years in prison..

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Simultaneously with the arrest announced today, law enforcement authorities dismantled Bitzlato's digital infrastructure, confiscated cryptocurrencies and took other necessary measures..

Recall that in early December, the US Department of Justice charged People's Deputy of Ukraine Andriy Derkach with fraud and money laundering when buying luxury real estate in California..

In Ukraine, the risk of illegal use of cryptocurrency is growing. Recommendations on how to protect your funds were provided by Gosfinmontitoring. They explained how a person does not become a violator of the law and a gateway for money laundering.