Crypto Exchange Bitzlato Halts ‘Special Balance Withdrawals’

• Crypto exchange Bitzlato has announced the suspension of some of its services.
• The exchange termed the move a “temporary measure.”
• Despite the reassurance, Bitzlato faces troubles both in France and the U.S.

Troubled crypto exchange Bitzlato has suspended “special balance withdrawals” and technical support on its platform, according to a December 27 post shared on its Telegram Channel.

The development comes hardly a month after Bitzlato co-founder and majority shareholder Anatoly Legkodymov pleaded guilty to a $700 million illicit transfer charge in the U.S.

Bitzlato Suspends Special Balance Withdrawals

Per the announcement , Bitzlato was “faced with the need” to suspend some of its services following what the exchange termed “not an easy year” in its history.

“At the moment, we are faced with the need to suspend special balance withdrawals and technical support. This is a temporary measure to prepare for and go through the upcoming court hearings regarding the seizure of user assets in France. We are determined and optimistic about this issue,” the statement read.

Despite the development, the exchange clarified that it could close 70% of the balance sheet it had when the withdrawal service was suspended. Stating that the year “was not so bad,” the exchange claimed it worked hard and tripled its BTC.

But even as Bitzlato tried to reassure its users with optimism about 2023, the exchange seems to have much on its plate as we cross into 2024.

The Troubled Crypto Exchange

As part of his guilty plea on December 6, Legkodymov agreed to dissolve Bitzlato and forfeit over $23 million in seized assets of the exchange.

Before Legkodymov’s guilty plea, French authorities working with Europol and authorities in Spain, Portugal, and Cyprus, dismantled and seized Bitzlato’s digital infrastructure in January for allegedly “laundering of large sums of illicit profits and converting them into Russian rubles.”

About 46% of the seized assets, totaling about $1 billion, were linked to entities sanctioned by the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) or to ransomware, money laundering, and cyber scams.

Read how Europol alleged Bitzlato laundered $1 billion:
Crypto Exchange Bitzlato Laundered $1 Billion Linked to Criminal Activities, Europol Says

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