Bitzlato has placed an indefinite hold on the removal of Bitcoins (BTC) from the site due to legal issues in France.
The crypto exchange site Bitzlato declared on December 27 that withdrawals of special balances and technical customer support would no longer be available.
In order to get ready for impending legal proceedings about the confiscated assets of users in France, the administration referred to it as a “temporary measure.”
“We are faced with the need to suspend special balance withdrawals and technical support.”
Users of the Bitzlato app and web version also have access to a partial Bitcoin withdrawal starting on March 20. The platform raised the fund’s cap to 60% as of September 14.
On January 18, Bitzlato ceased operations following the apprehension of its founder, Anatoly Legkodymov, in Miami. Later, he entered a guilty plea to money laundering and transfer charges.
The entrepreneur also agreed upon the platform’s closure and waiver of any claims over the exchanger’s seized assets totaling around $23 million. Legkodymov submitted a petition for release from custody as part of the plea agreement.
After that, the French Prosecutor’s Office looked into the business. Bitzlato allegedly converted assets linked to criminal activity worth roughly €1 billion ($1.08 billion). The sum includes $15 million for ransomware operators and $700 million for the darknet marketplace Hydra.
The platform’s hot wallet, which held roughly 35% of user assets in all cryptocurrencies at the time of the operation, was also taken by law authorities.
