Last week, the US Justice Department shuttered crypto exchange Bitzlato over allegations of money laundering and arrested its founder in Miami. However, the latest report by Reuters suggests that crypto giant Binance had reportedly processed $346 million worth of Bitcoin for Bitzlato.
Binance and Bitzlato
On January 18, the Justice Department charged Bitzlato founder Anatoly Legkodymov for operating an unlicensed money exchange fueling “a high-tech axis of crypto crime” and processing $700 million worth of illicit funds.
The Justice Department said that Bitzlato didn’t conduct enough background checks on its clients. They further added that even though Bitzlato conducted enough background checks for its clients, “it repeatedly allowed them to provide information belonging to “straw man” registrants”.
As per the data compiled by blockchain analytics firm Chainalysis, crypto exchange Binance had processed more than 20,000 Bitcoins in over 205,000 transactions for Bitzlato since 2018. This nearly amounts to a staggering $3...