U.S. DOJ Shuts Down Crypto Platform Bitzlato, Arrests Founder on the Basis of Fraud
The United States Department of Justice (DOJ) has charged cryptocurrency exchange Bitzlato with money laundering and fraud.
According to the DOJ, Bitzlato is accused of stealing over $700 million through it firm, which enabled users to trade in crypto currencies using fiat currencies.
Fraud Charges
Bitzlato, a Hong Kong based crypto platform was shut down following an investigation that exposed the firm’s fraud and money laundering practices.
The DOJ’s accusations stated that Bitzlato’s operators were aware of the ongoing fraudulent activities on the platform which included hacking and fraud.
They further accused the operators of also facilitating these activities and failing to implement the proper anti-money laundering (AML) and know-your-customer (KYC) protocols.
The exchange was accused of providing its users access to these activities and keeping them hidden while conducting these transactions.
In addition to the fraud charges, Bitzlato’s operators are also accused of running an unlicensed money transmitting business.
The firm was also accused of not registers under the Financial Crimes Enforcement Network.
Need For Tighter Regulations In The Space
These charges laid against Bitzlato passes a clear and distinct message that the Department of Justice is on its toes towards the crypto industry this year. The DOJ has taken up a tough stance against crypto related crimes this year and is ready to tackle and curb every slight appearance of it.
The case also stresses the importance of proper AML and KYC protocols, and the dire importance for cryptocurrency exchanges to obey regulations put in place to guide its activities and register with important financial regulatory bodies.
It is worth noting that the cryptocurrency industry has shown rapid growth through the years, with more recorded traction of Individuals and firms operating in the space.
As the industry continues to grow, it will be important for regulators to implement stringent regulations and keep a close watch on the space to identify and prevent illegal activities before they get executed.
The charges against Bitzlato serve as a warning to other cryptocurrency exchanges of the dangers in store for them if they fail to comply with regulations and other laws guiding their activities in the space.
The incident also stresses the need for efficient regulations within the industry to prevent such illegal activities from happening.
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