Cryptocurrency It has been learned that Binance has recently closed many accounts related to the Bitzlato exchange, which was sanctioned by the US Department of Justice.
The development came to light after some Russia-based Binance users complained that they could not withdraw their funds from the exchange.
Users claimed that their accounts were shut down without any warning. Most of the users in question admitted to using the Bitzlato exchange before.
Binance Spokesperson Confirms Bitzlato Linked Accounts Closed
A Binance spokesperson confirmed in a statement that the account closures in question are related to the Bitzlato cryptocurrency exchange:
“Currently more than 90% of accounts are unlocked, users have been informed about it. All funds are safe. Less than 20 affected users were provided with contact information of the relevant law enforcement forces.”
Binance advised users to check its article on possible causes of account blocking.
Bitzlato was a little-known cryptocurrency service that allowed users to trade cryptocurrencies through an exchange and peer-to-peer services. The platform allegedly conducts significant operations in Russia and operates from the Federation Tower skyscraper in Moscow.
According to the US government’s allegations, Bitzlato ran its operations without complying with Know Your Customer procedures, which helped it become a “shelter” for criminal proceeds and funds intended to be used in criminal activities.
The Bitzlato announcement of the US government was expected with great excitement, but after the sanction announcement on this little-known stock market. bitcoin caused a rise in price.
*Not investment advice.
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