• Speculation on ‘Crypto Twitter’ went wild after a Department of Justice announcement regarding a press release on “International Crypto Enforcement Action”.
• The DoJ press release shared that the federal body was taking enforcement action against Russian exchange Bitzlato.
• Data from Arkham Intel showcased that Bitzlato tagged wallets represented a mere $11,000 in value, with that number having peaked at $6M.
The world of cryptocurrency was abuzz with speculation on Wednesday after the Department of Justice (DoJ) made a vague announcement regarding a press release on “International Crypto Enforcement Action”. The announcement, while non-descriptive, still managed to send shockwaves through the world of crypto, causing many to speculate whether a stablecoin ban, increased regulations, or a government crackdown was incoming.
When the DoJ’s live-streamed press release took place at 17:00 UTC, the announcement was anything but the predictions of the crypto world. Instead, the federal body was taking enforcement action against the little-known Russian exchange, Bitzlato. The sequence of events was odd to say the least, and many believe that the DoJ was simply out of touch with what is happening in the space.
Data from Arkham Intel, amplified by Coinbase director Conor Grogan, showed that Bitzlato tagged wallets represented a mere $11,000 in value, with that number having peaked at $6M. While millions of dollars have exited the exchange in the past – either seized or withdrawn from accounts that got word ahead of time – it is still a drop in the bucket compared to routine cryptocurrency volumes.
This moment served as yet another entertaining event in the world of crypto. While the DoJ still seeks to protect consumers and ensure the safety of their investments, the enforcement action against Bitzlato was a reminder that the world of crypto remains a largely unregulated space. It is the responsibility of each individual investor to do their due diligence and research before investing in any cryptocurrency. In the end, the crypto world continues to be a wild ride, and events like these certainly prove it.