Did a cryptocurrency exchange fail to implement anti-money laundering safeguards?

“As alleged, the defendant helped operate a cryptocurrency exchange that failed to implement anti-money laundering safeguards and enabled criminals to profit from their wrongdoing, including ransomware and drug trafficking,” stated Assistant Attorney General Polite.

Are cryptocurrency exchanges above the law?

“Institutions that trade in cryptocurrency are not above the law and their owners are not beyond our reach,” stated U.S. Attorney Breon Peace. “As alleged, Bitzlato sold itself to criminals as a no-questions-asked cryptocurrency exchange, and reaped hundreds of millions of dollars’ worth of deposits as a result.

Why was Russian cryptocurrency owner arrested?

U.S. law enforcement officials have arrested the Russian owner of a cryptocurrency exchange for allegedly failing to implement required anti-money-laundering safeguards, enabling criminals who used the platform to traffic drugs and steal people’s money and identities, the Justice Department said.

What's happening with the crypto industry?

A crackdown on crypto firms is complemented by the shutdown of two major banks that served the cryptocurrency industry. Crypto banking giant Silvergate Bank announced in March that it was ending operations and liquidating its assets—resulting in Bitcoin falling below $20,000 for the first time in nearly two months.