The leading crypto exchange Binance has been quietly closing multiple accounts linked to the ongoing Bitzlato investigation. Several Russian-speaking Binance clients recently reported their accounts were blocked without warning, and they could not withdraw their funds. In response, they formed a Telegram group chat with over 1,000 members to discuss the issue.
As reported by TronWeekly previously, one of the leading crypto exchanges, Binance, was listed among the top Bitcoin counterparties of Bitzlato by the Financial Crimes Enforcement Network. After that, it was uncovered that the exchange handled approximately $346 million worth of Bitcoin for Bitzlato, a cryptocurrency exchange facing allegations of being a source of money laundering
Binance Respond To Account Suspensions
A spokesperson for Binance confirmed the connection to the Bitzlato case, stating:
Last week, in relation to the Bitzlato case, our compliance and investigations team suspended accounts of some users from several countries, including Eastern Europe and the CIS.
The spokesperson added that the majority of suspensions were temporary, and over 90% of accounts have been unlocked, with all funds being safe.
The affected users, less than 20, have been provided with relevant law enforcement contact information. Binance advised users to refer to their article on reasons why an account may be blocked and what to do in such a situation.
However, many members of the Telegram group admitted to using Bitzlato and having transactions between Bitzlato and Binance accounts. Some users expressed frustration and confusion over the ban on Bitzlato, as the firm has not been proven guilty.
Some members expressed their frustration and confusion over the enforcement action against Bitzlato, with one member writing, “I consider these bans to be lawlessness.” Other members raised concerns, saying:
Blockages in relation to Bitzlato are nonsense. They haven’t been proven guilty so far as there are only accusations, so how can this money be dirty?
Nevertheless, the Bitzlato investigation continues to impact the cryptocurrency community, with Binance being one of the latest exchanges to feel its effects. The suspension of accounts, however temporary, has sparked debate among users on the legitimacy of such actions and the fate of Bitzlato.