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- On Wednesday, January 18th, the US Department of Justice announced its enforcement action against the Hong Kong-based cryptocurrency Bitzlato
- The announcement also revealed that on January 17th, the FBI arrested Bitzlato’s founder and majority owner Lagadimov—a Russian national.
- Bitzlato and its founder are primarily charged with laundering money.
- They also stand charged with helping and enabling a Darknet cybercrime network that involved drug trafficking, hacking, and extortion as part of the “Bitzlato-Hydra axis”
- US Authorities also seized Bitzlato’s website.
- According to the announcement, the action was a part of a large-scale international operation much like the October bust of a crime ring that used digital assets to smuggle oil and steal technology.
This is a breaking story and will be updated as new details emerge.
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