Bitzlato CEO arrested by Spanish police: Report

According to a Feb. 2 report by Turkish quality bureau Anadolu, Spanish authorities person arrested the CEO, income enforcement and selling manager of Hong Kong cryptocurrency speech Bitzlato. In total, six Russian and Ukrainian nationals related to the speech were arrested successful a associated effort betwixt France, Portugal, Cyprus and United States instrumentality enforcement. 

As told by Spanish police, the exchange's anonymity allowed it to go the level of prime for transgression organizations seeking to launder wealth via cryptocurrency. Authorities seized $19.8 cardinal (18 cardinal euros) successful integer assets, luxury cars, cash, smartphones and different items related to the probe and blocked implicit 100 speech accounts.

The determination comes conscionable 2 days aft co-founder Anton Shkurenko stated successful an interrogation that 50% of the Bitcoin (BTC) held successful Bitzlato wallets could beryllium withdrawn the aforesaid time the speech relaunches aft investigators seized astir 35% of users' funds held successful the exchange's blistery wallets. Regarding this matter, Shkruenko besides explained that the caller Bitzlato volition beryllium based successful Russia and "out of scope of instrumentality enforcement authorities."

Related: Bitzlato kept a debased profile, but did not spell wholly unnoticed earlier DOJ action

On Jan. 18, the U.S. Department of Justice announced an enforcement enactment against Bitzlato, alleging that a deficiency of Know-Your-Customer and Anti-Money Laundering compliance helped cybercriminals launder implicit $700 cardinal via the Bitzlato exchange. The aforesaid day, Bitzlato websites were unopen down, with a information of speech funds seized by police. Its co-founder, Anatoly Legkodymov, a Russian nationalist and nonmigratory of the People's Republic of China, was arrested successful Miami astir the aforesaid day.

Bitzlato homepage aft enforcement action