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Bitzlato, “seized” crypto exchange, lets users withdraw 50% of Bitcoin

Date:

SNEAK PEEK

  • Upon being seized by European authorities, Bitzlato has found a way to provide its users access to withdraw half of their assets.  
  • Withdrawals are processed in Bitcoin since the exchange has transformed altcoin holdings BTC.
  • Bitzlato will consistently work to restore the platform and aspires to offer a service for peer-to-peer cryptocurrency trading by coming April.

Bitzlato has somewhat restored access to user funds even after being officially seized by European authorities. The crypto exchange allowed users to withdraw up to half of the assets adhered to the platform owing to impositions from the United States and Europol, as announced by the company on its Telegram channel on March 20.

Based on the announcement, users of the crypto exchange can restore half of their assets by utilizing the Telegram bot, bz_phoenix_bot, which enables users to transfer assets from the Bitzlato account to an external exchange or wallet

Withdrawals from Bitzlato are processed in bitcoin since the platform converted users’ altcoin holdings into bitcoin on January 18, when the service was stopped. The reason stated was technical issues related to servicing several altcoins post Bitzlato was seized. 

During a public Bitzlato chat, many accused  Bitzlato users shared being able to shift their Bitcoin to crypto exchanges such as Binance and ByBit. Also, some accused Bitzlato clients used software wallets such as ViaBtc and Trust Wallet besides hardware wallets such as Ledger to withdraw their bitcoin.

The 50% withdrawal option of Bitzlato follows the earlier announced roadmap about restoring access of users to the platform and beginning operations. The exchange will continue its work to restore the platform and plans to offer a service for P2P crypto trading by early April this year. 

Many users have chosen not to withdraw half of their assets from Bitzlato since they want to wait until the exchange restores P2P trading. After restoring the P2P platform, users can access previously available functions, according to a Bitzlato spokesperson. However, users should not expect to recover the other 50% of assets after the P2P exchange is released.

Emphasizing the same, the spokesperson said:

“There will be no second half once the P2P is opened since these are two unrelated questions and processes.”

The problem regarding the client funds isn’t fixed as of now; however, Bitzlato is looking forward to returning the money by restoring access to seized funds by Europol or from the company’s funds. 

The spokesperson said that the French government’s decision has been disputed by lawyers, and if the outcome is positive, the funds will be returned. On the other hand, if it doesn’t work, users must wait until the company makes enough money to compensate for the losses.

As mentioned above, in mid-January, the United States Department of Justice announced an international crypto enforcement action against Bitzlato. Europol shared that European authorities seized $19 million plus in crypto from Bitzlato due to the enforcement actions.

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