The US Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department, has alleged that Binance is linked to the illegal cryptocurrency exchange Bitzlato. In an order published on January 18, FinCEN said that cryptocurrency exchange Binance was among Bitzlato’s “top three recipients” in terms of Bitcoin. BTC pointers down $20,756 transactions. According to the authority, Binance was among the largest counterparties receiving Bitcoin from Bitzlato between May 2018 and September 2022. Other counterparties include Russia-connected darknet market Hydra and an alleged Russia-based Ponzi scheme known as “TheFiniko,” according to FinCEN. On the other hand, FinCEN did not mention Binance as the top three senders in the ranking. According to the document, the largest senders of Bitcoin to Bitzlato between May 2018 and September 2022 were Finnish LocalBitcoins exchange Hydra and TheFiniko. “Almost two-thirds of the counterparties received and sent from Bitzlato are related to darknet markets or scams,” FinCEN wrote in the request. The agency noted that between 2019 and 2021, Bitzlato received $206 million worth of cryptocurrency from darknet markets, $224 million from scams, and $9 million from ransomware attackers. The news comes amid several US authorities initiating major enforcement action against Bitzlato, accusing the company of money laundering and allegedly facilitating the circumvention of sanctions against Russia. As part of the case against Bitzlato, the FBI arrested Bitzlato founder Anatoly Legkodimov on January 17 in Miami. ads AI Powered Indicator 204 Win Alerts Sent in 2022. Click for details >>> Unlike major cryptocurrency exchanges like Binance or Coinbase, Bitzlato was an unknown cryptocurrency service. Founded in 2016, the platform reportedly has an office in the Federation Tower skyscraper in Moscow, where it has accepted transactions of $100,000 or more. Binance’s alleged involvement in the Bitzlato case appears to raise some concerns about the exchange’s operations and potential ties to Russia. As previously reported, Binance was among the exchanges that chose to continue serving non-sanctioned Russians after the European Union adopted its eighth sanctions package against the country. Related: Binance Registers as a Virtual Asset Service Provider in Poland A Binance spokesperson, addressing Cointelegraph’s request for comment regarding FinCEN’s reference to Binance in the Bitzlato case, said the company is cooperating with regulators, saying: “Binance is pleased to have provided significant assistance to its international law enforcement partners in support of this investigation. This exemplifies Binance’s commitment to working collaboratively with law enforcement partners around the world.” FinCEN did not immediately respond to Cointelegraph’s request for comment.

A day earlier, BTC was shaping up to match or even beat its November 2013 record of 15 consecutive days of positive price action, the longest such streak in its history.

Although the record was unbeaten, Bitcoin posted its longest winning streak since the 2013 record in a “ridiculous” run, according to some Twitter commenters.

Cointelegraph data shows that bitcoin came close to losing 2.4% on the day and returned to below $21,000, a value it has not reached since the bankruptcy of cryptocurrency exchange FTX in early November last year.

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Related: Tucker Carlson Outlines a Wild Theory to Explain Bitcoin’s Rising Price: ‘Tin Foil Limit’

The main reason for the negative price movement appears to be the ominous announcement made by the US Department of Justice (DOJ) earlier on January 18, saying that it will “announce an international measure to enforce cryptocurrency.”

Many speculated that it could be against a major exchange or crypto company, but it turned out that the action was against a little-known exchange called Bitzlato that is based in Hong Kong and has ties to Russia. The founder of the stock exchange, Anatoly Legkodimov, was also arrested.