The Bitzlato scandal may affect Binance.
The US Department of Justice has imposed sanctions against the Russian Bitzlato exchange
On Tuesday, January 17, Bitzlato founder Anatoly Legkodymov was detained in Miami. He is accused of aiding and abetting the laundering of funds from thefts, drug sales and gambling in the amount of more than $700 million.
It also turned out that Bitzlato was closely linked to the largest market in the darknet called Hydra. Notably, Binance stated that it assisted the investigation and law enforcement agencies during the investigation.
This week FinCEN (Financial Crimes Enforcement Network) published an order. It says that two-thirds of the main counterparties cooperating with or receiving cryptocurrency from Bitzlato are connected with the darknet and/or fraud.
At the same time, Binance is listed as one of the largest partners. In the period from May 2018 to September 2022, it was this company that received the most bitcoins from Bitzlato,
Hydra and the Russian TheFinico occupy only the second and third places. As for the largest partners who sent BTC to Bitzlato, here the first "three" looks like this: Hydra, Local Bitcoins in Finland and TheFiniko.