Cryptocurrencies: the main suspect in an investigation involving the Bitzlato platform released in France

Mykhailo L. Released in Bitzlato Investigation

Mykhailo L., a 28-year-old Ukrainian considered the main suspect in a French investigation regarding the cryptocurrency exchange platform Bitzlato, was released in late September, as confirmed by a source close to the investigation. The French authorities accuse Bitzlato of laundering criminal assets until the beginning of 2023.

International Crackdown on Bitzlato

In January 2023, a joint operation between Washington and Paris resulted in the arrest of Anatoli Legkodimov, the Russian founder and major shareholder of Bitzlato, along with individuals in Portugal, Cyprus, and Spain, including Mykhailo L. Millions of euros in criminal assets were seized during this operation.

Allegations Against Bitzlato

Bitzlato, founded by four Russian shareholders in 2017 and hosted on French servers, was accused of facilitating quick and anonymous global cryptocurrency exchanges for roubles. Despite implementing customer identity verification measures in spring 2022, the platform was deemed inadequate by investigators.

Controversial Findings and Accusations

Chainalysis estimated that 26% of Bitzlato’s financial transactions since 2019 were linked to illicit activities, amounting to 650 million dollars. Allegations suggest Bitzlato’s involvement in drug trafficking, funding the Russian invasion of Ukraine, and participating in fraudulent activities related to the Covid-19 pandemic.

Key Players and Legal Proceedings

Internal messages retrieved from “Mattermost” suggested that Bitzlato’s executives were aware of the dubious origins of some transactions. Mykhailo L., initially downplaying his role upon arriving in France from Spain, faced accusations of being a pivotal figure within the Bitzlato structure. Legal proceedings involve several individuals connected to the platform.

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