U.S. authorities announced the co-founder of exchange Bitzlato pleaded guilty on accusations of running an illegal money transmitter. (Jesse Hamilton/CoinDesk)

Crypto Exchange Bitzlato Co-Founder Pleads Guilty to U.S. Money Transmitter Charge

Summary

Anatoly Legkodymov, co-founder of Hong Kong-based crypto exchange Bitzlato, has admitted to operating an unlicensed money transmitter involved in money laundering activities. The business is alleged to have processed funds from criminal activities like ransomware attacks and illegal drug trades. Legkodymov has consented to dissolve Bitzlato and relinquish claims to around $23 million in seized assets. The exchange was previously sanctioned and deemed a major money-laundering concern by the U.S government. Deputy Attorney General Lisa Monaco described Bitzlato as a sanctuary for criminals. Despite the legal action and the website seizure, another co-founder, Anton Shkurenko, suggested the exchange might still reopen.