Binance shuts down accounts in relation to Bitzlato investigation

In connection with the investigation being conducted by Bitzlato, the cryptocurrency exchange Binance has been secretly closing various user accounts on the site.

On the 18th of January, a number of Russian-speaking customers of Binance voiced their dissatisfaction with the exchange for blocking their accounts and preventing them from withdrawing their assets. The people who were impacted by the problem established a Telegram group conversation in order to report it and said that their accounts had been disabled without any prior notification.

Immediate comparisons were made between the obstructions and an enforcement action taken by the United States Department of Justice against the cryptocurrency business Bitzlato. The membership of the organisation, which currently numbers more than 1,000 people, made the connection almost immediately. Binance was recognised as one of Bitzlato's top Bitcoin (BTC) counterparties by the United States Financial Crimes Enforcement Network (FinCEN).

The use of Bitzlato, including both incoming and outgoing transactions between Bitzlato and Binance accounts, has been publicly acknowledged by a significant number of conversation participants. Some of the users who were impacted have voiced their displeasure and uncertainty over the measures taken against Bitzlato.

One conversation participant wrote: "Though I haven't been banned anyplace yet, I merely lost some on BTC-e, Wex, and now it's Bitzlato, but I consider these bans to be lawlessness." Despite the fact that they haven't banned them yet, they have lost their funds on BTC-e, Wex, and now Bitzlato.

"Blockages relating to Bitzlato are a complete waste of time. Since they have not been found guilty up to this point and there are simply allegations, how can this money be dirty? Another user had this question.