In recent news, Binance cryptocurrency exchange has allegedly been affiliated with money laundering through transactions with crypto exchange Bitzlato.
The creator of Bitzlato, a Russian named Anatoly Legkodymov, has been charged with using the website to launder 700 million dollars. According to the U.S. Justice Department, these monies have been used to carry out criminal operations including gambling and the purchase of narcotics on the dark web. After that, he was detained on Tuesday in Miami.
The U.S. Financial Crimes Enforcement Network of the Department of Treasury said in an order that “about two-thirds of Bitzlato’s top receiving and sending counterparties are linked with darknet marketplaces or scams.”
According to the agency, Binance served as the primary recipient of Bitcoins from Bitzlato between May 2018 and September 2022. Two-thirds of Bitzlato’s receiving and sending partners are linked to unlawful transactions with the dark web and other frauds, according to the Treasury Department.
TheFiniko, a Russian Ponzi scam, and Hydra, a Russian dark net market, have been identified as the second and third largest Bitcoin recipients, respectively. While the top 3 counterparties for transmitting were Hydra, Local Bitcoin of Finland, and TheFiniko.
The exchange has been cooperating and working with the authorities, according to the Binance spokeswoman. demonstrating their dedication to collaborating with law enforcement.
According to the U.S. Treasury Department, Bitzlato, a company situated in Hong Kong, is one of the main worries when it comes to Russia’s illegal money. The corporation is reportedly connected to Russia on a number of occasions.