Founder of crypto exchange Bitzlato pleads guilty to money laundering of millions of dollars – IT Pro – News

The founder of crypto exchange Bitzlato pleads guilty to laundering more than $700 million. The money came from ransomware groups, among others. The 41-year-old Russian is currently in custody in the United States.

Het U.S. Attorney’s Office in the Eastern District of New York State accuses the suspect of being “lax” in monitoring his customers. Identification with, for example, a passport or photo was not necessary. As a result, the Russian has ‘created a safe haven for criminals’, the lawyers say.

“The suspect’s plea confirms that he was well aware that Bitzlato was being used by criminals eager to benefit from his lax controls on illegal monetary transactions,” said Attorney Breon Peace. Many of Bitzlato’s most prominent customers came from Hydra Market, an online marketplace that trades in narcotics and stolen data. In addition, money laundering services are offered on the platform.

The founder of Bitzlato lives in the Chinese city of Shenzhen, but was arrested in Miami in January 2023. writes Reuters. The Russian embassy in Washington requested the man’s release in April, but the American government has not yet responded. If the suspect is found guilty, he could receive a maximum prison sentence of five years.