Binance was among the top three counterparties for the Bitzlato digital currency exchange, whose founder was arrested by US authorities, accused of money laundering
As reported by Reuters, the leading crypto exchange Binance processed almost $346 million in bitcoin for the notorious trading engine Bitzlato, whose founder Anatoly Legkodymov was arrested for allegedly processing $700 million in illicit funds.
A Russian national living in China, Legkodymov is suspected of laundering funds tied to illicit Russian finance. According to court documents, Bitzlato required minimal identification from its users, the registration needed “neither selfies nor passports.” As a result of deficient KYC procedures, the crypto exchange allegedly became a haven for criminal proceeds.
Bitzlato’s largest counterparty in crypto transactions was the Hydra Market darknet. Binance was the only major crypto player among Bitzlato’s top counterparties. According to FinCEN, other entities involved in Bitzlato-related transactions were a small exchange LocalBitcoins and a crypto investment website called Finiko, described as “an alleged crypto Ponzi scheme based in Russia.”