Binance Moved $346 Million For Seized Crypto Exchange Bitzlato: Reuters

An exclusive report by Reuters has it that crypto giant Binance processed almost $346 million in bitcoin for the fairly unknown crypto exchange Bitzlato.

Last week, U.S authorities arrested Bitzlato’s founder for allegedly running a "money laundering engine."

On Jan. 18, the Justice Department charged Bitzlato’s co-founder and majority shareholder Anatoly Legkodymov, with operating an unlicensed money exchange business that "fueled a high-tech axis of crypto crime" by processing $700 million in illicit funds.

Last week, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), said that Binance, the world’s largest crypto exchange, was among Bitzlato’s top three counterparties by the amount of bitcoin received between May 2018 and September 2022.

FinCEN said the other counterparties to transact with Bitzlato were the Russian-language darknet drugs marketplace Hydra, a small exchange called LocalBitcoins, and a crypto investment website called Finiko.

Reuters claims it has no evidence that the Binance, LocalBitcoins, or Finiko transactions with Bitzlato, broke any rules or laws.

Reuters reports that Binance moved over 20,000 bitcoin, worth $345.8 million at the time they were transacted, across some 205,000 transactions for Bitzlato between May 2018 and its closure last week.

Bitcoin worth about $175 million was transferred to Binance from Bitzlato in that period, making Binance its largest receiving counterparty, the report added.


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