![20230119_064516_0000.png](https://i.imgur.com/bI8q4IU.png)






<hr>

<hr>


I heard about how the US justice department shut down a crypto exchange called Bitzalo for laundering money for criminals with Russian connections to it. Apparently Anatoly Legkodymov the founder ran a crypto front for criminals who were laundering illicit money running up to $700M in just a few years. The issue is that Bitzalo was like a decentralized bank for criminals. Because this money was dirty Russian funds, Bitzalo majorly provided a front for these criminals with Russian connections to successfully recycle these illicit funds and this has gone on for some years now. 



> **Now while $700M might not be $15B,** 

*but it feels like right out of the frying pan of FTX into something different*


 I guess the people who have been feeling that an imaginary crypto exchange would surely be shut down now have their wishes/fear/concerns come to pass. The truth is, I feel less frightened about this, and the reason is that I'm sure the core of the crypto network and community has never heard of or used this exchange. In fact, I'm sure it made the news because of the recurrent situation of exchanges and their founders being shut down for doing what they shouldn't have done. These Bitzalo guys aren't trying to be coy and blame the technology for being unstable hence failing them. 


<hr>


### The Player & Not The Game Taking Credit

For example, the fact that SBF wouldn't admit that he's a thief only creates an impression to normies, government agencies, and crypto critics that crypto might be the problem and not FTX. But in this situation, it's clean and clear, a criminal is using a system, he may use fiat and we cannot blame fiat for this, because the concentration would be weeding, shutting down, and arranging a criminal, so I think this shouldn't be any less because it was done using crypto.  




> **Sadly CEXs will always Make the news For  Bad things**

Before FTX happened, arresting a shady exchange owner for providing a money laundering front for criminals wouldn't make the news and one of the reasons why I think so is because, this feels more like a criminal/bad actor, who tries to take advantage of the decentralization of Crypto to house criminals. Of course, I know that the anonymity that comes with Crypto would be blamed as the reason why these guys successfully laundered money over the years would not be noticed, but, every system comes with advantages that are always exploited for negative gains. 


<hr>

### Decentralization Is Exploitable

For example, the decentralized nature of crypto is to give people total control of their assets, but certainly, we all know that bad actors, will always exploit something as advantageous as that to suit their nefarious purposes. So I guess the US justice department would understand this, it'll be more of a criminal case because of the tech of Crypto. But SBF and FTX have happened. This means that even if this shouldn't have been an issue, it's now an issue because it feels like there are now more crypto exchanges with nefarious intents rather than providing the usual services of buying, selling, and holding for asset owners. 

<hr>

### Corrections Or Bitzalo?


However, it's visible to note that there have been some little corrections here and there in the past two days, a lot of people are not beginning to tie these dumps and corrections to Bitzalo, I don't blame them, after $700M is involved and something has to happen to that money and whatever the US justice department deems of that money might shake the market that's showing signs of recovery and greens. However, I wouldn't say this completely too. While I'll partially blame Bitzalo and its founder. I think we're also simultaneously experiencing some corrections, many people have sold to take profits and waiting for *buybacks* when prices hit lower. 


> *I believe that people will continue to loathe and be wary of CEXs from now on*


*Why?*

 because whatever prospective dips we might see will no longer be seen as the market doing its thing. This is because FTX has ushered us into a new era of crypto, where witch-hunting and regulations will stare at centralized exchanges for a long period. So, any exchange that's doing anything shady might be caught anytime soon, because the witch hunt is on. But the number of exchanges that have come under scrutiny has been surprising, it feels like the FTX ripple might create some instability for some time, but I do believe that when these guys are finally flushed away, we can then finally have fewer bad actors in the system and we can finally take off again.

<hr>

### The Witch-Hunt Is On


 I'm sure it was the intentionality of this witch hunt that made it possible for Bitzalo to be finally shut down. This means that this project and its money laundering activities have been flying under the radar before the FTX blow-up, and it's a mixed feeling knowing that these guys are going under, in comparison with the sad feeling of knowing that they're shaking the resolve of Crypto and unsettling it to some sizeable extent. However, I won't say completely say Bitzalo has been the reason for these corrections, I'll say it's just the market doing its things and showing some corrections. I don't think too many people will slip into *FUD* because of Bitzalo.


<hr>

### A Dip Or A Buying Opportunity

On the contrary, many are happy to buy this present dip because there's a different belief out there that crypto is still **moon-able** post-FTX because of the recent recovery we seen. So I think In a week or two, the market will stabilize once more. I know it's concerning that there will always be a potential Bitzalo out there, it might be foolhardy to think we've finally fished out all the bad actors running big scams. However, the worst is behind us, people who have taken profit before now will see it as an excellent position to buy back, the likes of Bitzalo might keep happening now and then, but I think recovery would be inevitable going forward. 


<hr>

<hr>

<hr>


> **Interested in some more of my works?**



<hr>


##### [Reviewing A $400 Samsung Galaxy A72 (photos Included)](https://hive.blog/hive-167922/@josediccus/reviewing-a-400-samsung-galaxy-a-72-photos-included)



##### [Hive's Scalability & The Compromise Of Commitments](https://hive.blog/hive-153850/@josediccus/hives-scalability-and-the-compromise-of-commitments)




##### [Money: The Consequences Of Making The Right & Wrong Decisions](https://hive.blog/hive-167922/@josediccus/money-the-consequences-of-making-the-right-and-wrong-decisions)



##### [The Nigerian Economy: Monopolizing Incompetence](https://hive.blog/hive-167922/@josediccus/the-nigerian-economy-monopolizing-incompetence)


##### [The Experiential Process of Understanding Money](https://hive.blog/hive-167922/@josediccus/mcxlpomk)



##### [A Case Of Theft On Hive: Here's Why Some People Choose Scam.](https://hive.blog/hive-153850/@josediccus/a-case-of-theft-on-hive-heres-why-some-people-choose-scam)









<hr>


![png_20230102_074302_0000.png](https://images.hive.blog/DQmeV2CFmYVojVvzuFv3ZDySDqjEg2qXhfJNTjmmi5uCTss/png_20230102_074302_0000.png)






Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@josediccus/bitzalo-in-usd700m-scheme-why-bad-actors-will-now-be-blamed-for-price-corrections)