Cryptocurrency exchange Bitzlato converted about 1 billion euros of crypto assets linked to crime, Europol said. The platform is suspected of facilitating the laundering of large amounts of criminal proceeds and converting them into rubles, the report said.

On January 18, the U.S. Department of Justice announced the suspension of Bitzlato crypto exchange registered in Hong Kong and the arrest of its founder – Russian citizen Anatoly Legkodymov. According to the agency, Bitzlato operated in the U.S. without the necessary license and processed illegal transactions worth more than $700 million.

According to EU police estimates, a total of €2.1 billion worth of assets passed through the Bitzlato crypto exchange. Analysis by law enforcement agencies showed that about 46% of these transactions (worth about €1 billion), were related to criminal activity.

Most of the suspicious transactions related to entities against which the US Office of Foreign Assets Control (OFAC) had imposed sanctions. Other transactions were related to cyber fraud, money laundering, extortion programs and child abuse material, Europol said. Investigations revealed that 1.5 million bitcoin transactions were made directly between Bitzlato users and Hydra, a darknet drug marketplace shut down in 2022.

In a joint effort involving law enforcement agencies in Cyprus, Belgium, France, the United States, Spain, the Netherlands and Portugal, four other people were arrested in addition to Legkodymov – one in Cyprus and three in Spain. The operation of the exchange’s servers in France has been halted. Europol said in a statement that 8 homes were searched, 18 million euros in cryptocurrency, vehicles and electronics were seized. 50 million euros in crypto assets were frozen in more than 100 accounts on other exchanges.

The US authorities intend to completely stop the activities of Bitzlato, writes RBC. In particular, according to a former employee of the U.S. Ministry of Finance Kari Steinbauer, a decision has been made with respect to the crypto exchange, according to which American and foreign banks will no longer be able to cooperate with the site.