Benzinga - Cryptocurrency followers have been left a bit confused after the Justice Department said it had shut down a little-known China-based cryptocurrency exchange named Bitzlato.
What Happened: Bitzlato founder Anatoly Legkodymov, a Russian national who lives in China, was arrested in Miami on Tuesday night and charged with running a $700 million money-laundering operation. The U.S. Justice Department has described the business as an "axis of cryptocrime" that is "fueling a high-tech network of money laundering".
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What Is Bitzlato? According to its website, Bitzlato is a "modern company working in the field of blockchain technologies and Convertible Virtual Currency."
But few were aware of this exchange until it was caught by law enforcement.
DOJ Enforcement Action Against Russian Exchange BitzlatoSome even questioned why the DoJ went after "a random tiny Russian exchange" instead of Sam Bankman-Fried's FTX, which has been accused of massive fraud.I’ve worked in the space since 2013. Never heard of it
— Hailey Lennon (@HaileyLennonBTC) January 18, 2023
The Bitzlato announcement from the DOJ is so bizarre.The DOJ worked for over a year to shutdown a random tiny Russian exchange while FTX was literally a multi-billion dollar fraud right in front of them? pic.twitter.com/1cwEIvjojO
— Joe Burnett (