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The Bitzlato Scandal Caused a Drop in the Price of Bitcoin and Ethereum

Cryptocurrency market analysts believe that the reason for the decline in the value of the main cryptocurrencies by capitalization could be the accusation of the US Department of Justice of money laundering against the Bitzlato exchange, as well as the arrest of its co-founder.

Hong Kong-based cryptocurrency exchange Bitzlato is accused of carrying out over $700 million worth of illegal transactions, according to a US Department of Justice statement.

The price of bitcoin fell from a four-month high of around $21,550 to around $20,600, while the price of ether fell from $1,700 to $1,500.. Statistics provided by CoinGlass show that more than $106 million worth of Bitcoin and Ethereum futures bets have been liquidated over the past 24 hours, representing more than 76% of all futures transactions.

In the middle of the day on Friday, January 20, the value of crypto assets began to gradually recover. Bitcoin is estimated at around $20,940, up 0.8% over the past 24 hours, Ethereum — $1,550, up 1.5%.

New York University professor Nouriel Roubini, during his speech at the World Economic Forum in Davos, called the cryptocurrency industry a criminal activity, and 99% of crypto assets are fraud and pyramid schemes.