{"id":16903,"date":"2023-01-26T05:00:13","date_gmt":"2023-01-26T05:00:13","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/binance-processed-346-million-for-crypto-exchange-bitzlato-report-claims-exchanges-bitcoin-news\/"},"modified":"2023-01-26T05:00:13","modified_gmt":"2023-01-26T05:00:13","slug":"binance-processed-346-million-for-crypto-exchange-bitzlato-report-claims-exchanges-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/binance-processed-346-million-for-crypto-exchange-bitzlato-report-claims-exchanges-bitcoin-news\/","title":{"rendered":"Binance Processed $346 Million for Crypto Exchange Bitzlato, Report Claims \u2013 Exchanges Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Cryptocurrency exchange Binance has reportedly processed nearly $346 million in crypto transactions for Bitzlato, the coin trading platform that was shut down in an international law enforcement operation. U.S. authorities say the world\u2019s largest trading platform for digital assets was among Russian-owned Bitzlato\u2019s major counterparties.<\/strong><\/p>\n

Blockchain Data Indicates Binance Moved Over 20,000 BTC<\/a> for Bitzlato Since 2018<\/h2>\n

The global leader in the crypto trading sector, Binance, has allegedly transferred cryptocurrency worth almost $346 million for the Hong Kong-based Bitzlato, Reuters reported quoting data from Chainalysis. Bitzlato was a little known exchange until it was recently targeted in what U.S. authorities described as a \u201csignificant blow to the crypto crime ecosystem.\u201d<\/p>\n

Last week, the Justice Department announced<\/a> that Bitzlato\u2019s co-founder and majority shareholder, Russian citizen Anatoly Legkodymov who lives in China, was arrested in Miami and charged with operating an unlicensed money exchange business that processed $700 million in illicit funds.<\/p>\n

On Wednesday, the U.S. Treasury\u2019s Financial Crimes Enforcement Network (FinCEN) said that Binance was the only major crypto exchange that transacted with Bitzlato, and one of its top counterparties. Among the others were darknet marketplace Hydra<\/a>, peer-to-peer (P2P) exchange Localbitcoins, and the crypto investment scam Finiko<\/a>, Russia\u2019s largest financial pyramid in recent years.<\/p>\n

The Hong Kong-registered Bitzlato, better known to Russian-speaking users, was a \u201cprimary money laundering concern\u201d related to Russian illicit finance, according to FinCEN. The bureau did not reveal details about the scale of said platforms\u2019 transactions with Bitzlato but said it will ban financial institutions from transferring funds to the exchange without specifying the entities it was referring to.<\/p>\n

According to data compiled by the blockchain forensics firm Chainalysis and seen by Reuters, Binance moved over 20,000 BTC<\/a> for Bitzlato, worth $345.8 million at the time the transactions took place, between May 2018 and its shutdown. Bitcoin for about $175 million was transferred to Binance from Bitzlato during the period, making Binance its largest receiving counterparty, the report also noted.<\/p>\n

Largest Crypto Exchange Says It Assisted Investigation Into Bitzlato<\/h2>\n

Binance has \u201cprovided substantial assistance\u201d to international law enforcement to support their investigation of Bitzlato, a spokesperson for the exchange told the news agency via email, while declining to provide further details about the crypto giant\u2019s dealings with Bitzlato or its cooperation with authorities.<\/p>\n

The Finland-based Localbitcoins said it has never had \u201cany kind of cooperation or relationship\u201d with Bitzlato while admitting that some P2P traders at its platform \u201cwould also have been trading in Bitzlato\u2019s P2P market\u201d but pointing out that there have been no transactions between the two exchanges since October, 2022.<\/p>\n

Reuters remarked it has no evidence that the Binance, Localbitcoins or Finiko transactions with Bitzlato broke any laws or regulations. It was also unable to establish if Binance\u2019s dealings with Bitzlato are currently being reviewed. At the same time, the U.S.-led action against Bitzlato comes as the Justice Department probes Binance for possible money laundering and violations of sanctions.<\/p>\n

A number of European countries are also involved in the investigation against Bitzlato. Last week\u2019s announcement revealed that French law enforcement authorities have dismantled the platform\u2019s digital infrastructure in the country and seized its website. On Monday, Europol informed<\/a> that four more members of the exchange\u2019s team have been arrested in Spain and Cyprus.<\/p>\n

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Binance<\/a>, Bitcoin<\/a>, Bitzlato<\/a>, BTC<\/a>, Crypto<\/a>, Cryptocurrencies<\/a>, Cryptocurrency<\/a>, Europe<\/a>, european<\/a>, Europol<\/a>, Exchange<\/a>, Exchanges<\/a>, Finiko<\/a>, Investigation<\/a>, justice department<\/a>, Law Enforcement<\/a>, LocalBitcoins<\/a>, Russia<\/a>, russian<\/a>, transactions<\/a>, transfers<\/a>, U.S.<\/a>, US<\/a><\/div>\n<\/div>\n

Do you expect Bitzlato\u2019s alleged dealings with Binance and other crypto platforms to be investigated further? Share your thoughts on the subject in the comments section below. <\/strong><\/em><\/p>\n

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\nLubomir Tassev <\/h6>\n

\nLubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens\u2019s quote: \u201cBeing a writer is what I am, rather than what I do.\u201d Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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