• FTX crypto exchange recently collapsed, leading to intensified regulation of crypto-related activities and platforms like Binance.
• Bitzlato is under investigation by the US DoJ for unlicensed money transfers, and Binance is the most significant Bitcoin counterparty.
• Customers on Binance have complained about their accounts being blocked without warning.
The collapse of the crypto exchange FTX recently has put the entire crypto industry on high alert. While the cause of the collapse is still under investigation, most global regulators have intensified their watch on crypto-related activities and platforms like Binance. One such platform under investigation is the crypto exchange Bitzlato, which is currently being probed by the United States Department of Justice (DoJ).
The DoJ has discovered incriminating facts regarding money laundering activities on the platform and has subsequently charged the crypto exchange’s founder and majority owner for unlicensed money transfers. FinCEN’s recent report has revealed that Binance is the most significant Bitcoin counterparty for Bitzlato, with large transactions from Bitzlato using Binance as their landing custody in an attempt to conceal the source of the illicit funds.
As a result of these investigations, Binance has been taking action and is closing some accounts related to Bitzlato’s probe into money laundering, as noted by some users. This has led to an outcry from customers, who have taken to Telegram to complain about their inability to withdraw funds from their accounts on the exchange platform. Over 1,000 users are estimated to be affected by the account blocks on Binance, which were implemented without warning.
Overall, the collapse of FTX has led to a heightened level of regulation and scrutiny being placed on crypto-related activities and platforms like Binance. As a result, Bitzlato is currently under investigation by the US DoJ for unlicensed money transfers, and Binance is the most significant Bitcoin counterparty for the exchange. Customers on Binance have been affected by the account blocks, which were implemented without warning, sparking an outcry from those affected.