US authorities have named crypto exchange giant Binance a counterparty linked to Bitzlato, the US Department of the Treasury announced Wednesday.
According to the Treasury’s Financial Crimes Enforcement Network (FinCEN) order, Bitzlato had conducted money laundering totalling $700 million USD. FinCEN accused Binance of providing funds along with the “Russia-connected darknet market Hydra [and] alleged Russia-based Ponzi scheme ‘TheFiniko'” from May 2018 to September last year.
A Binance spokesperson hit back at the allegations, stating: “Binance is pleased to have provided substantial assistance to international law enforcement partners in support of this investigation. This exemplifies Binance’s commitment to working collaboratively with law enforcement partners worldwide.”
The comments echo statements from Binance’s Changpeng Zhao after Poland’s Financial Supervisory Authority warned the exchange over similar allegations. Despite this, Binance secured its licence in the Central European nation.
A Binance spokesperson said at the time: “This shows the level of commitment & hard work [CZ] is putting in for the adoption and compliance. Extremely bullish for [Binance].”
Bitzlato Founder Arrested in Miami
The news comes after US and French authorities arrested Bitzlato founder Anatoly Legkodymov on Wednesday as part of a “major international cryptocurrency enforcement action.”
A statement from the US Department of Justice (US DoJ) alleged the crypto exchange was a “primary money laundering concern.” It also accused the company of ties to Russian money laundering.
Authorities arrested Legkodymov in Miami, where he faces a hearing at the US District Court for the Southern District of Florida.
