Crypto Exchange Bitzlato Halts All Bitcoin Withdrawals
Bitzlato co-founder pleaded guilty on 6th December and agreed to dissolve illegal trading activities. The trading platform also forfeited the native digital currency in addition to suspending withdrawals. Weeks from the incident, the trading platform has enacted the digital currency trading platform as part of the guilty plea.
The platform noted in the latest statement that it has decided to halt all Bitcoin withdrawals. The exchange posted the latest declaration on 27th December on its official Telegram account.
The notification informed the investors that the decision was a temporary measure that would prepare the trading platform for upcoming legal hearings concerning user assets seized in France. The exchange noted that the team is filled with enthusiasm and optimism about the matter.
Former Bitzlato CEO Anatoly Legkodymov announced that it was going ahead with dissolution of the trading platform as part of his plea bargain with the regulators about operating as an unlicensed monetary services provider. The platform also forfeited $23 million in native cryptocurrencies on account as part of the guilty plea.
Law Enforcement Agencies Arrest Bitzlato Founder
Police arrested Bitzlato founder in January from Miami. Agencies such as the US Department of Justice, the Treasury Department, and French law enforcement agencies were jointly working on the investigation.
In this manner, the majority portion of firm’s infrastructure assets including official website were seized. The trading platform managed to partially restore account holder access to their funds in March. The platform facilitated users to withdraw 50% of assets stuck on the platform via a Telegram bot.
The trading platform increased the withdrawal limit in the following months leading up to 70% in November. Attorney Breon Peace alleged that the platform was working as an open turnstile for illegal activities.
Meanwhile, the Department of Justice purported that it served as transaction channel for Hydra darknet. In this manner, bad actors were able to launder funds for illegal scams such as ransomware bounties.
Nigerian Central Bank Lifts Ban on Crypto
The Central Bank of Nigeria has lifted the ban on cryptocurrencies within their jurisdiction. The CDO of Yellow Card Lasbery Oludimu recently remarked that the policy change can lead to a crypto boom. She further stated that the latest move will encourage traditional financial institutions to use blockchain tech for new digital currency services.
Speaking with journalists he noted that peer-to-peer trading will increase after the ban is lifted. She further stated that the move will lead to more cryptocurrency firms heading to Nigeria for setting up operations.
She further noted that crypto utility will spike in Nigeria during 2024. At the same time, that the directive will facilitate structured and regulated environment for digital currency transactions.
At the same time, the executive retained that presence of institutional investors in the sector will also lead to generation of streamlined and structured regulatory environment. Additionally, she noted that the step was a step in right direction to preserve innovation and continued operations of legitimate businesses such as Yellow Card to continue to operate.
As per Nigerian tech and legal expert Chinedu Albert eNaira adoption will take place when government restores the trust of investors. In 2021, a Chainalysis report ranked Nigeria as one of the top nations in terms of cryptocurrency trading participation. The survey served as basis for the theory that investors actively seek decentralized transaction channels.
