The cryptocurrency exchange, Bitzlato, has announced the temporary suspension of Bitcoin withdrawals due to legal challenges in France.
The platform took this step in response to upcoming court hearings involving seized user assets, resulting in the suspension of special balance withdrawals and technical support.
Users have had the option to partially withdraw Bitcoins since March 20, with the withdrawal limit increased to 60% on September 14.
The situation unfolded after Bitzlato’s founder, Legkodymov, pleaded guilty to transferring criminal funds in Miami, leading to the platform’s closure and forfeiting approximately $23 million in claims.
The French Prosecutor’s Office initiated an investigation, revealing Bitzlato’s involvement in converting criminal-related assets worth around €1 billion, including funds from the darknet marketplace Hydra and ransomware operators.
Also Read: Bitzlato Founder Pleads Guilty on Processing $700M Illicit Funds
Bitzlato’s temporary suspension of Bitcoin withdrawals underscores the wider impact of legal challenges and the founder’s criminal actions, prompting concerns about the platform’s integrity.
