US Disrupts Bitzlato Crypto Exchange, Arrests Founder

The U.S. Justice Department and Treasury Department have targeted Bitzlato Limited with accusations of money laundering, officials said in a Wednesday press conference.

The Hong Kong-based platform Bitzlato has been disrupted by authorities and its founder Anatoly Legkodymov was arrested, ending its catering to known criminal activity tied to Russia, said Deputy Attorney General Lisa Monaco, outlining coordinated enforcement actions that also included the Federal Bureau of Investigation and the U.S. Treasury Department.

The action was the most significant action against a crypto criminal network, Monaco said.

This story is developing.

Nikhilesh De contributed reporting.