Bitzlato will restore operations and withdrawals from Russia, co-founder vows – swaps

Russia-linked cryptocurrency exchange Bitzlato, which was seized by Western law enforcement, plans to restart and allow partial withdrawals, a co-founder announced. Members of the trading platform team also intend to move the business to the Russian Federation.

Co-founder says Exchange will provide access to user funds

Crypto exchange Bitzlato is taking steps to restore operations and allow customers to withdraw Bitcoin immediately, one of its founders, Anton Shkurenko, said in a statement interview with Satoshkin Live, a YouTube channel dedicated to crypto investing and trading and quoted by major Russian-language crypto news outlets Forklog and Bits.media.

In January, the platform was registered in Hong Kong broken as part of an international law enforcement effort described by U.S. authorities as a “strike on cryptocrime.” It allegedly processed $700 million in illicit funds received from criminal organizations such as the darknet market Hydra and the Russian crypto Ponzi scheme Finiko.

His other co-founder, Anatoly Legkodymov, a Russian citizen residing in China, was arrested in Miami, as were several other team members imprisoned in Europe. The service was disrupted with the involvement of French authorities, who took control of its servers and shut down its website.

Shkurenko told Satoshkin's host Dmitry Stepanin that French officials were able to seize Bitzlato's hot wallet, which at the time held around 35% of user funds in various cryptocurrencies. He did not specify the exact amount, but dismissed reports claiming the total exceeds $1 billion.

The executive also rejected allegations that the company had evaded taxes, assuring that it had always complied with know-your-customer and anti-money laundering regulations under European law, while cooperating with law enforcement authorities to prevent illegal activities. He also expressed hope that the charges would soon be dropped and those arrested would be released.

Four Bitzlato employees were arrested with the involvement of Europol, and Shkurenko revealed their identities - former executive director Mikhail Lunev, marketing manager Alexander Goncharenko, Pavel Lerner, a contractor working on the implementation of the Monolithos DAO, and a system administrator identified as Konstantin. The latter was released on bail in Cyprus.

Cryptocurrency exchange Bitzlato is moving to Russia

Bitzlato is currently reviewing its losses, the co-founder said, further revealing that the company plans to move to Russia and renew its operations under Russian jurisdiction. Right now, Bitzlato is looking for an infrastructure contractor, he said.

Regarding the return of user funds, Anton Shkurenko assured that customers can withdraw 50% of them Bitcoin in Bitzlato wallets on the day the platform is launched again. Holdings of altcoins will be released gradually, he added, without giving a timeline.

The world's largest crypto exchange Binance, which was reportedly one of the largest recipients of Bitzlato processed $346 million in funds from the platform blocked some accounts of Bitzlato users in Eastern Europe and the Commonwealth of Independent States following the law enforcement operation. The leading exchange later said it had restored access to most of those accounts.

Do you think crypto exchange Bitzlato will be able to refund users when it restores operations? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens' quote: "Being a writer is what I am, not what I do." In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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