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One of the biggest concerns involving digital asset misuse is that cryptos could be used in money laundering.
As the police investigation led the authorities to believe that some of the BKEX crypto exchange’s users were engaged in this illegal activity, the platform has halted all withdrawals to aid the investigation.
#BKEX Announcement on Suspension of Withdrawals
– Details: https://t.co/gDh6Z3bg9a pic.twitter.com/EMTEuU2DDO
— BKEX (@BKEXGlobal) May 29, 2023
So far, the investigation is still ongoing, and the authorities are currently in the process of collecting evidence.
In its statement, BKEX said,
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.
The exchange’s announcement said that its team will fully cooperate with the investigation.
In the meantime, it will also work with the authorities to resolve the issues and ensure that the rights of the users are protected to the greatest extent possible.
Speaking of the users, the platform also said that it will maintain transparent and timely communication during the process.
Another crypto platform was recently investigated for money laundering
The cryptocurrency community, naturally, did not like the move. Many have started accusing the platform of rug-pulling people or being a scam, while others are dissatisfied about not being able to withdraw their money. On its end, the platform assured its user base that it will do its best to restore normal operation as soon as possible.
At this time, the exchange — founded in mid-2018 — offers crypto, derivatives, and margin trading.
Since its founding, the platform has managed to attract over 8 million users and operates in more than 100 countries.
The money laundering probe at BKEX comes several months after Bulgarian police raided the local office of a crypto lending firm, Nexo.
The raid was conducted in partnership with foreign agents, and it targeted a total of 15 different offices belonging to the company.
Reports of the raid have said that prosecutors launched an international operation to investigate alleged financial crimes in which the platform was supposedly involved.
One of the issues was the platform’s failure to enforce AML procedure, which allowed transactions that had violated international sanctions against Russia, resulting from the country’s invasion of Ukraine.
Bulgaria’s Prosecutor General, Siika Mileva, said through a spokesperson that one of the firm’s clients is an individual known to have connections to financial terrorism.
Furthermore, she noted that the crypto company processed over 94 billion EUR over the course of the last five years.
On the other hand, Nexo responded by accusing the prosecutors of jumping to conclusions and adopting the “kick first, ask questions later” approach.
The crypto lending platform said that it never compromises and that it has very stringent AML and KYC procedures.
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