BKEX Temporarily Halts Withdrawals Citing Money Laundering Investigation
BKEX, a lesser-known cryptocurrency exchange, has made allegations that some of its users are laundering money using their platform. As a consequence, the platform is helping the authorities collect evidence and has temporarily halted withdrawals while the regulators look into the matter.
BKEX stated in a statement on May 29 that it is committed to working with the appropriate authorities to return the exchange to regular operations and end the present disruptions.
The exchange stated:
“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.”
Authorities Crackdown on Exchanges
Moreover, one of the most pressing issues in the cryptocurrency sector is the potential for money laundering via central cryptocurrency exchanges. To combat this, Know Your Customer (KYC) policies have been implemented to help stop things like identity theft and money laundering.
Earlier, U.S. authorities have accused Anatoly Legkodymov, a Russian citizen who founded the Hong Kong-based cryptocurrency exchange Bitzlato, of facilitating the laundering of monies stolen by hackers. Chainalysis predicts that between 2019 and 2021, Bitzlato would receive over $2 billion in cryptocurrency, of which over $966 million will be illegal and hazardous cryptocurrency.
Bittrex, a cryptocurrency exchange located in Washington, was fined $53 million by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) in October for breaking anti-money laundering rules.