The US Department of Justice is taking action against fraudulent cryptocurrency exchange Bitzlato and its CEO for illegal activity.
The DOJ has charged the Hong Kong exchange with facilitating more than $700 million in illegal transactions and money laundering. This is part of a larger crackdown by the DOJ on illegal cryptocurrency activities.
According to the DOJ, Bitzlato was involved in money laundering and other illegal activities. Anatoly Legkodymov , the CEO, has been charged with multiple crimes: if convicted he could face significant penalties.
The U.S. Department of Justice has taken steps in recent years to crack down on criminal activities conducted with digital currencies, including using them for money laundering and drug trafficking offenses.
To protect investors and maintain the integrity of the financial system, experts argue that a crackdown on illegal cryptocurrency activities is necessary. They warn, however, that legitimate companies could be negatively impacted by such a move—a fact which shouldn’t be ignored during policy discussions.
Cryptocurrency businesses and investors must familiarize themselves with anti-money laundering and know your customer requirements in order to comply with regulations.
Today, when companies are held accountable for their actions and decisions by the government and their customers alike —as well as in the court of public opinion—it’s critical that companies be cautious about how they conduct themselves.
The cryptocurrency industry is full of boiler room operations, scams, and pump-and-dump schemes. While some law enforcement agencies have taken action against those they feel are involved with illegal activities—others haven’t done much at all.
In the coming months and years, it’s likely that law enforcement will continue to pursue digital currency-related crimes until there is little left to go after.