According to a US Treasury Financial Crimes Enforcement Network order, Binance is one of Bitzlato's top three receiving counterparties (FinCEN).
On January 18, US officials filed enforcement measures against the little-known exchange, accusing it of assisting the laundering of $700 million. Anatoly Legkodymov, the exchange's Russian creator, was apprehended in Miami.
According to the FinCEN ruling, about two-thirds of Bitzlato's top receiving and sending counterparties were linked with darknet markets or frauds. The authorities noted that, in addition to Binance, Bitzlato's top receiving counterparties included Russia's darknet Hydra and Ponzi scheme “TheFiniko.”
Meanwhile, a Binance representative stated:
“Binance is glad to have offered significant assistance to international law enforcement partners in support of this investigation. This reflects Binance's commitment to collaborating with law enforcement partners around the world.”
FinCEN stated in its decision that all covered financial institutions are prohibited from sending funds involving Bitzlato.
The transaction was determined to be a “major money laundering risk in connection with illicit Russian finance,” according to the police.
The order takes effect on February 1.
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