Anatoly Legkodymov, a Chinese citizen, was detained in Miami on Tuesday night and was due to appear in court on a charge of running an illegal money transfer business.
The creator of the cryptocurrency exchange Bitzlato is Legkodymov.
Bitzlato is a Hong Kong-incorporated company that served as a “key financial resource” for the largest and longest-running dark web market of its type, Hydra.
The Russian source, on the other hand, asserts that Legkodymov controls 73.4% of Bitzlato.
In Moscow’s Federation Tower tower, Bitzlato maintains a high-floor office that handles transactions of $100,000 or more.
Legkodymov and his main Bitzlato partner are reportedly connected to the Russian distributor of cryptocurrency mining equipment A-HVT.
Legkodymov has had a tough, protracted career in the bitcoin industry for more than ten years.
In 2011, he posted for the first time on the BitcoinTalk site, outlining the events that led to the loss of more than 50 BTC.
Why Was Bitzlato Crypto’s Founder Anatoly Legkodymov Arrested?
Page Contents
The creator and senior Executive of Bitzlato Crypto, Anatoly Legkodymov, was detained on Tuesday in Miami.
He was accused of deliberately instructing the company to deliver money gained via cybercrimes and other illicit activity.
Legkodymov only demanded a limited amount of user identification and did not put in place the appropriate anti-money laundering protections.
He even permits them to provide information on “straw man registrants,” those who register as users under false pretenses.
In Brooklyn, where the lawsuit was acquired, U.S. attorney Breon Peace said that Bitzlato had turned into a sanctuary for criminals including drug traffickers and ransomware groups.
They were aware that even if the authorities followed their transfers to Bitzlato, Bitzlato would not be able to divulge the genuine identity of its users.
Bitzlato, a Hong Kong-based company, was a “key financial resource” for the Hydra dark web market, the largest and most well-known of its sort, according to Deputy Attorney General Lisa Monaco.
Charged With $700m in Financial Crimes is Anatoly Legkodymov
It was alleged that Anatoly Legkodymov controlled the illegal money-transfer company Bitzlato Ltd.
A Russian man named Anatoly was charged with money laundering as the United States hunts criminal suspects online. Anatoly allegedly used a cryptocurrency exchange to hide over $700 million in illegal gambling and drug sales profits.
Authorities assert that Legkodymov and other Company executives spoke about how drug dealers and other criminals were using their system to hide their riches, even referring to some of the money transmitted via their portals as “dirty money.”
Legkodymov, a founder, might get a maximum term of 5 years in prison as a result of this.
On Wednesday, a 40-year-old founder was being detained, and it wasn’t clear whether he had an agent who could speak for him.
According to the prosecution, the Company allowed users to submit fake registration information in order to avoid being discovered.
According to the investigators, Legkodymov and his company were targeted by drug dealers and cyber criminals because of their anonymity.
The accusations and arrest were made public by Assistant Attorney General Kenneth Polite, who oversees the Criminal Division of the Justice Department.
According to Polite, the federal government’s attempts to halt unlawful activities within the bitcoin ecosystem represented a big step forward thanks to the worldwide probe.
The Treasury Department also worked with French law enforcement to identify Bitzlato’s alleged illegal activities, which U.S. authorities said was proof of global cooperation to oust dishonest actors from the cryptocurrency exchanges.
Also Read: Lenny Kravitz Girlfriend, Gay, Children
