The US authorities have filed charges against the founder (Russian) of Bitzlato, a Hong Kong based cryptocurrency exchange, claiming that the exchange has been used to launder hundreds of millions of dollars from dark networks.

The main owner of Bitzlato, Anatoly Legkodymov, lives in China and was arrested by the Federal Bureau of Investigation in Miami on Tuesday. Legkodymov is accused of operating a 'high-tech financial center, in his own words, serving' fraudsters'.

According to the US Department of Justice, Bitzlato has processed over $700 million in illegal funds, including drug trafficking, illegal gambling, and ransomware attacks. Several European countries have also taken action, sealing down Bitzlato's servers and cryptocurrencies, and closing the exchange.

Lisa O Monaco, Deputy Secretary of Justice of the United States, said: "Overnight, the Department of Justice collaborated with major partners both domestically and internationally to dismantle Bitzlato. This is a money laundering engine headquartered in China, which has fueled the arrogance of a high-tech encryption criminal gang. We arrested Anatoly Legkodymov, the founder of the exchange and a Russian national“

Legkodymov is accused of engaging in currency transfer business without a license. If convicted, he will face up to 5 years in prison.

At the same time, the Financial Crime Enforcement Network of the US Treasury Department has officially identified Bitzlato as a "major money laundering party" related to illegal Russian finance, and has also linked the money laundering case of the exchange to Russia's invasion of Ukraine.

Wally Adeyemo, Deputy Secretary of the Treasury of the United States, said: "At a time when Russia is waging a cruel and unjust war in Ukraine, and at a time when Russia is trying to evade sanctions and governance controls to fill its treasury and maintain its violence, we will not tolerate criminal companies profiting for Russia's improper purposes“