US arrests Russian crypto exchange owner for allegedly laundering over $700 million - The US DOJ alleges Bitzlato crypto firm was a ‘safe haven’ for cybercriminals.

submitted by neolib from theverge.com

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[–]neolib[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

‘Wtf is Bitzlato?’ Crypto Twitter rolls eyes at DOJ’s big arrest

https://www.theblock.co/post/203516/wtf-is-bitzlato-crypto-twitter-rolls-eyes-at-dojs-big-arrest

[–]SoCo 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Crypto value was banging, so they had to get something in the news cycle. Call him Russian and Chinese, with the current Administrations rabid racism against the two, and you can smooth out any mob action, like this.

This was a Hong-Kong registered Chinese exchange, which they arrested the owner, who lives in China, for running a tiny peer to peer exchange...because this 6 year old exchange, which did not allow US customers, did not abide by the US's ridiculous regulatory requirements, which didn't apply to the exchange.

Hong Kong will bend over for this international-thug-move due to being tricked into dependence on US favor.

Being peer to peer and requiring no identification, the exchange could not know whom the parties exchanging with each other were or where their money came from. This exchange was more of a bulletin board of want and for sale adds and was mostly facilitated with Telegram bots. This is like arresting Wikipedia or Facebook for what people posted (which nutjobs are trying to do ferociously lately; see US, UK, and India).