Edit: Bitzlato — CryptoScamsWiki

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## Summary

Bitzlato was a Hong Kong-registered cryptocurrency exchange that, according to the U.S. Department of Justice, processed more than $700 million in illicit funds and marketed its lack of identity checks to attract criminal users. [1][2]

## Takedown

In January 2023, U.S., French, Spanish, Portuguese, Cypriot, and Europol authorities seized Bitzlato's infrastructure and cryptocurrency, and Treasury's FinCEN designated it a "primary money-laundering concern." The exchange suspended operations the day after founder Anatoly Legkodymov's arrest in Miami. [1][2]

## Illicit activity

Prosecutors said Bitzlato served as a counterparty for the now-defunct Hydra darknet marketplace and processed funds for ransomware operators. Europol estimated the platform converted assets totaling roughly €1 billion. [2]

## Outcome

In December 2023, Legkodymov pleaded guilty to operating an unlicensed money-transmitting business, agreed to dissolve Bitzlato, and relinquished claims to about $23 million in seized assets. In July 2024 he was sentenced to time served (18 months). [1][2]

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