In a major crackdown on cybercrime, law enforcement authorities have disrupted the activities of crypto exchange Bitzlato and accused its operators of being a “haven” for illicit activities.
The joint operation was carried out by the U.S. Department of Homeland Security (DHS), the U.S. Department of Justice (DOJ), the FBI, and the IRS. The operation – which targeted the illicit activities associated with the Bitzlato crypto exchange – also included assistance from the United Kingdom’s National Crime Agency and the Spanish Guardia Civil.
The investigation revealed that Bitzlato was a “haven” for cybercriminals, offering them a platform to anonymously trade in digital currencies. The exchange was also allegedly used to launder funds, disguise payments related to cybercrime, and facilitate purchases of drugs, malicious software, and stolen financial data.
Moreover, the official press release noted that Bitzlato was not compliant with anti-money laundering (AML) rules and regulations, and provided its customers with a “completely anonymous” and “incorrectly reported” way to hide their criminal proceeds.
As a result of the operation, the authorities have frozen more than $150 million in assets belonging to the exchange and arrested 13 individuals who are allegedly associated with the exchange. Moreover, the authorities seized more than 200 cryptocurrency accounts as well as servers which were used to facilitate transactions on the exchange.
“This operation demonstrates that criminals who believe that they can hide behind technology and anonymous online networks will be identified, tracked and held accountable for their actions,” said U.S. Attorney David P. Burns.
The operation highlights the importance of compliance with anti-money laundering rules and regulations to prevent cybercriminals from using crypto platforms to hide and launder their illicit activities. It also signals a renewed commitment by authorities to clamp down on cybercrime and prosecute those who facilitate illicit activities.