U.S. Authorities Move Against High-Risk Exchange Bitzlato for Providing Money Laundering Services to Ransomware Attackers and Other Russia-based Criminals

January 21, 2023

Additionally, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) identified Bitzlato as a primary money laundering concern over illicit Russian financing. The U.S. Government cited Bitzlato’s role as a money laundering destination for ransomware attackers and administrators of the notorious Hydra Market, as well as other cybercriminals, as the impetus for the takedown. At that time, we found that a large share of all funds received by Bitzlato between 2019 and 2021 came from risky or illicit sources. Of that total, 26% came from illicit sources, and 27% came from risky sources. Follow the money, disrupt the launderersWe’ve often discussed how important money laundering service providers are to the wider crypto crime ecosystem.