The cryptocurrency world was rocked this week after authorities announced the dismantling of crypto exchange Bitzlato, alleging it was serving as a “haven” for cybercriminals.
The takedown was part of a joint effort by several international law enforcement agencies, including the U.S. Department of Justice, the U.S. Internal Revenue Service, the U.K.’s National Crime Agency and Europol.
According to the charges, the website was being used by criminals to commit various crimes, including money laundering, the sale of stolen credit card information and illicit cryptocurrency transactions.
Agents allege that while the Bitzlato website served as a trading platform for legitimate purposes, it also actively welcomed and facilitated the use of cryptocurrencies for illegal activities. To do this, the site had a wallet address that could not be traced back to its users, making it ideal for criminals.
It is believed that Bitzlato processed more than $3 billion in illegal transactions.
The website was operated by a company registered in Bulgaria, and agents seized and froze nine bank accounts and several cryptocurrency wallets in several countries, including the U.S., Japan, and Australia.
The authorities also arrested several people linked to the Bitzlato website and charged them with a variety of offenses, including money laundering, operating an unlicensed money transmitting business and cybercrimes.
The incident is yet another reminder of the dangers of transacting on unregulated crypto exchanges, and users should always do their research and make sure to use only licensed and regulated exchanges.
Furthermore, if you suspect criminal activity on an exchange or are aware of any suspicious transactions, it is important to contact your local law enforcement authorities. Remember, no matter how anonymous it may seem, cryptocurrency transactions can still be tracked.
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