Spanish authorities, in cooperation with several other countries, have arrested the cryptocurrency platform’s CEO, head of sales and head of marketing Bitzlato for their alleged involvement in money laundering.
What happened: A total of six people were arrested, all of whom were Russian and Ukrainian nationals. The technology used for the platform was also deactivated and confiscated by the French police.
Bitzlato was known for its anonymous transactions and was reportedly one of the major conduits for global cryptocurrency money laundering.
The platform originally started as a Telegram bot for buying and selling cryptocurrencies and eventually expanded and rebranded as Bitzlato, launching a peer-to-peer crypto exchange app in 2020.
Due to its anonymity, the platform quickly became a favorite among criminal organizations, especially those involved in cybercrime, for its ability to launder money.
Cybercrime in the world of digital assets reached new heights in 2022, when cybercriminals stole an estimated $3.8 billion worth of cryptocurrencies. according to a recent report by blockchain forensics firm Chainalysis.
One of the key findings of the report was this DeFi platforms have been the main target of cybercriminals, It accounts for a whopping 82% of all stolen cryptocurrencies, or a total of $3.1 billion.
In recent raids on Bitzlato executives, authorities seized $20 million worth of cryptocurrencies, luxury vehicles, cash, smartphones and other technology linked to the investigation.
More than 100 cryptocurrency accounts were also suspended, disrupting the cybercrime ecosystem and affecting money laundering abilities.
The co-founder of the platform, Anatoly LegkodymovShe was also arrested in Miami in January and the US Department of Justice accused the platform of not knowing your customer and…
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