Crypto Exchange BKEX Suspends Withdrawal to Aid Money Laundering Probe

Cryptocurrency
exchange BKEX has frozen customer withdrawal on its platform to cooperate with
police investigation into alleged money laundering by some of its
users. The exchange on Monday said it decided to halt withdrawal in order to
aid authorities in collecting evidence.

“The team
will actively work with the relevant authorities to resolve the current issues
faced to ensure that the rights of our users are protected to the greatest
extent possible,” BKEX said in a statement on its blog.

#BKEX Announcement on Suspension of Withdrawals

– Details: https://t.co/gDh6Z3bg9apic.twitter.com/EMTEuU2DDO

— BKEX (@BKEXGlobal) May 29, 2023

The
exchange assured that it will “do its best to restore the normal operation of
the exchange.” BKEX through the platform offers crypto, derivatives and margin
trading features to users.

According
to CoinMarketCap, BKEX was founded in June 2018
and boasts of
over 8 million users from more than 100 countries in Asia, Europe and Latin
America, among others.

The money laundering-related probe at BKEX comes several months after Bulgarian police authorities in partnership with foreign agents raided the local offices of the cryptocurrency lending firm, Nexo. During the raid, a total of 15 offices of the firm were raided.

Finance Magnates reported that prosecutors launched an international operation to investigate the exchange for allegedly committing financial crimes, failing with its anti-money laundering (AML) processes and allowing transactions that violate the international sanctions against Russia.

Siika Mileva, Bulgaria’s Prosecutor General, through a spokesperson alleged that one of the company’s clients is a person linked to financial terrorism. In addition, she noted that the crypto firm has processed over €94 billion in the last five years, local media reports.

However, reacting to the development, Nexo in a Twitter post accused the prosecutors of adopting “the kick first, ask questions later approach.” The crypto lender noted that the firm “never compromises” with its “very stringent” AML and know-your-customer policies.

Scope Markets’ new hire; more features on CQG; read today’s news nuggets.

Cryptocurrency
exchange BKEX has frozen customer withdrawal on its platform to cooperate with
police investigation into alleged money laundering by some of its
users. The exchange on Monday said it decided to halt withdrawal in order to
aid authorities in collecting evidence.

“The team
will actively work with the relevant authorities to resolve the current issues
faced to ensure that the rights of our users are protected to the greatest
extent possible,” BKEX said in a statement on its blog.

#BKEX Announcement on Suspension of Withdrawals

– Details: https://t.co/gDh6Z3bg9apic.twitter.com/EMTEuU2DDO

— BKEX (@BKEXGlobal) May 29, 2023

The
exchange assured that it will “do its best to restore the normal operation of
the exchange.” BKEX through the platform offers crypto, derivatives and margin
trading features to users.

According
to CoinMarketCap, BKEX was founded in June 2018
and boasts of
over 8 million users from more than 100 countries in Asia, Europe and Latin
America, among others.

The money laundering-related probe at BKEX comes several months after Bulgarian police authorities in partnership with foreign agents raided the local offices of the cryptocurrency lending firm, Nexo. During the raid, a total of 15 offices of the firm were raided.

Finance Magnates reported that prosecutors launched an international operation to investigate the exchange for allegedly committing financial crimes, failing with its anti-money laundering (AML) processes and allowing transactions that violate the international sanctions against Russia.

Siika Mileva, Bulgaria’s Prosecutor General, through a spokesperson alleged that one of the company’s clients is a person linked to financial terrorism. In addition, she noted that the crypto firm has processed over €94 billion in the last five years, local media reports.

However, reacting to the development, Nexo in a Twitter post accused the prosecutors of adopting “the kick first, ask questions later approach.” The crypto lender noted that the firm “never compromises” with its “very stringent” AML and know-your-customer policies.

Scope Markets’ new hire; more features on CQG; read today’s news nuggets.