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Law enforcement authorities have confiscated approximately $19.8 million worth of crypto, fiat and luxury goods from the executives of the crypto platform, Bitzlato, in relation to an ongoing money laundering investigation.
In a report released on the 2nd of February, 2023, the authorities in Spain have arrested the Bitzlato CEO, one of the platform’s sales executive and its marketing director. But they were not only ones that got picked up in the sweep.
All in all, six Russian and Ukrainian citizens related to the Bitzlato were arrested in a joint effort between France, Cyprus, Portugal and the US law enforcement.
Speaking about the arrests, the Spanish police reported that the Bitzlato’s anonymity was what allowed it to become the destination platform for criminal organizations looking to launder money through crypto.
In relation to the ongoing investigation, authorities have sized about $19 million and blocked at least 100 exchange accounts.
Earlier in January, the U.S. Department of Justice announced an enforcement action against Bitzlato, alleging that the platform’s negligent attitude towards knowing their customers and non-compliance with Anti-Money Laundering regulations has helped cybercriminals launder over $700 million on the exchange.
Bitzlato’s co-founder, Anatoly Legkodymov, was also one of the people picked up by the police.