Lesser-known crypto exchange, BKEX, claimed that some user funds on the platform are involved in money laundering.
As a result, the platform is currently cooperating with the police to gather evidence and will suspend withdrawals for the regulatory investigation.
- In an announcement on May 29th, BKEX said it will continue to focus on restoring the normal operation of the exchange and will actively work with the relevant authorities to resolve the current issues.
“We will maintain transparent and timely communication during this process. If you encounter any problems or need assistance during the process, please feel free to contact our customer service team. We will be happy to provide you with support and assistance.”
- Money laundering via centralized crypto exchanges has been one of the major concerns in the industry. To counter this, KYC regulations have been put in place to aid in the prevention of identification fraud, financial crimes, and money laundering.
- Earlier this year, the US Department of Justice (DOJ) arrested and charged Russian national Anatoly Legkodymov, the founder of the Hong Kong-registered crypto exchange Bitzlato, for allegedly helping cybercriminals launder illegally obtained funds.
- According to Chainalysis’ estimation, Bitzalato received over $2 billion worth of crypto between 2019 and 2021, more than $966 million represented illicit and risky cryptocurrency.
- Last October, Washington-based crypto exchange Bittrex was fined $53 million for violating anti-money laundering laws by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC).
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