Anatoly Legkodymov is the majority shareholder of the Hong Kong-registered virtual currency exchange.
WASHINGTON, Jan 18 - U.S. authorities said on Wednesday they have arrested the majority shareholder and cofounder of Hong Kong-registered virtual currency exchange Bitzlato Ltd for allegedly processing $700 million in illicit funds.
"Whether you break our laws from China or Europe or abuse our financial system from a tropical island — you can expect to answer for your crimes inside a United States courtroom," Deputy Attorney General Lisa Monaco told reporters at a news conference at the Justice Department. It also broke rules requiring significant vetting of customers and failed to meet requirements aimed at preventing money laundering, authorities said. Archived versions of Bitzlato's website noted that the site's clients could register using "only your email."A representations of cryptocurrencies in this illustration taken, January 24, 2022. REUTERS/Dado Ruvic/IllustrationProsecutors said Bitzlato knowingly serviced U.S. customers and conducted transactions with U.S.
Adeyemo said Bitzlato has repeatedly facilitated transactions for Russian-affiliated ransomware groups, including the gang behind Conti, which he said has links to the Russian government and Russia-connected darknet markets.
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