Binance was named as one of Bitzlato’s top three receiving counterparties, according to an order by the US Treasury Financial Crimes Enforcement Network (FinCEN).
The US authorities brought enforcement actions against the little-known exchange on Jan. 18, accusing it of facilitating the laundering of $700 million. The exchange’s Russian founder Anatoly Legkodymov was arrested in Miami.
Around two-thirds of Bitzlato’s top receiving and sending counterparties were associated with darknet markets or scams,the FinCEN order reported. The authorities pointed out that apart from Binance, the other top receiving counterparties of Bitzlato included Russia’s darknet Hydra and Ponzi scheme “TheFiniko.”
Meanwhile, a Binance spokesperson told CryptoSlate:
“Binance is pleased to have provided substantial assistance to international law enforcement partners in support of this investigation. This exemplifies Binance’s commitment to working collaboratively with law enforcement partners worldwide.”
FinCEN said its order prohibits all covered financial institutions from transmitting funds involving Bitzlato.
The authorities added that the exchange was determined to be a “primary money laundering concern in connection with illicit Russian finance.”
The order becomes effective Feb. 1.
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