Bitzlato Crypto Exchange Allows Depositors to Withdraw Funds After AML Services Mark Coins as High-Risk.
On March 1, Bitzlato, a cryptocurrency exchange accused of money laundering by foreign law enforcement, announced in a Telegram channel that depositors can start withdrawing their funds.
The anonymous representatives of the platform posted detailed instructions on how to withdraw funds, as all coins have been flagged as high-risk by anti-money laundering (AML) services that track cases of laundering criminally acquired money.
In a statement, the Bitzlato team said they were back after a 42-day hiatus and that they had done a lot of work to ensure users’ data and coins were safe in their wallets.
The exchange had presented a roadmap for disbursing funds to users in mid-February, but part of the funds on the Bitzlato hot wallet remains with European law enforcement officials. Bitzlato continues to appeal against the arrest of its servers in France.
On January 18, 2023, representatives of the cryptocurrency exchange reported a hack and suspension of their activities, but service employees assured users that the attackers only withdrew a small portion of the funds. They asked users not to replenish balances temporarily.
The US Department of Justice arrested Bitzlato co-founder Anatoly Legkodymov in January, alleging that more than $700 million was laundered through the exchange.
Another co-founder, Anton Shkurenko, is also under scrutiny by law enforcement officers. While rumors circulated in mid-February that Shkurenko had been arrested and faced extradition, Bits.Media’s sources denied the allegations.