Home CryptocurrencyAltcoin Bitzlato kept a low profile, but didn’t go completely unnoticed before the DOJ action

Bitzlato kept a low profile, but didn’t go completely unnoticed before the DOJ action

by SuperiorInvest

Non-custodial peer-to-peer crypto exchange Bitzlato was little known to some before the United States Department of Justice (DOJ) cracked down on it on January 18. It was co-founded in 2016 by the recently arrested Russian citizen Anatoly Legkodymov.

According to a Russian source, Anatoly Legkodymov owns 73.4% of Bitzlato, which has an office on the high floor of the Federation Tower in Moscow, where accepted trades of $100,000 or more. Legkodymov and his main partner in Bitzlat are also said to be involved in the Russian company A-HVT, which distributes crypto-mining equipment.

Legkodymov has had a long and colorful history in the crypto industry dating back more than a decade. His earliest post on the BitcoinTalk forum dates back to 2011, where he described the events that led to the loss of more than 50 BTC:

Legkodymov described the process of opening the Bitzlato exchange on the online forum in 2017:

“My team and I analyzed numerous failure scenarios, including simulating a hacking attack by exchange owners and operators, and found a solution that allows us to operate a Bitcoin exchange in a highly secure manner.”

While Bitzlato attracted little attention until the DOJ event on January 18Chain analysis established announced in February 2022 that the exchange:

“He received $206 million from darknet markets, $224.5 million from fraud, and $9 million from ransomware attackers.”

Illegal and risky transactions accounted for 48% of the company’s business at the time, according to the report.

Related: The US has imposed sanctions on the largest Russian darknet market and crypto exchange Garantex

The Justice Department said it would hold a conference to discuss the charges earlier in the day, but did not say which companies would be involved. This led many who had speculated about the involvement of much bigger names to react with a certain amount of irony:

One lawyer comments online she called action against Bitzlat “a suggestion for future actions, perhaps even one that is highly anticipated today”.

Others have seen dark forces at work in taking down this darknet actor:

Bitzlato himself was apparently unaware of the action that was about to overtake him. On January 18, she tweeted the morning exchange rates to her 1,488 followers.

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