Defunct Crypto Exchange Bitzlato Allows 50% Withdrawal For Users

• The exchange announced the details on its Telegram channel on March 20.
• All withdrawals are going to be handled in BTC as per the exchange.

Despite being formally seized by European authorities, the Russia-connected cryptocurrency exchange Bitzlato has partly restored access to customer funds. Due to enforcement from the United States and Europol. Bitzlato has allowed its customers to withdraw up to 50% of assets locked on the platform. The company said on its Telegram channel on March 20.

According to the announcement, half of Bitzlato customers’ assets may be recovered via the usage of a Telegram bot. Which enables users to transfer their funds from their Bitzlato online account to an external wallet or exchange.

Withdrawals in Bitcoin (BTC)

Because Bitzlato changed all users’ altcoin holdings into BTC when service was terminated on Jan. 18, all withdrawals are handled in BTC. The company claims that when Bitzlato was seized, technological issues in handling several cryptocurrencies necessitated the conversion of user balances to Bitcoin.

Many individuals claiming to be Bitzlato users reported successful Bitcoin withdrawals to third-party services including ByBit and Binance in a publicly accessible Bitzlato chat. According to the claims, some of the Bitzlato customers who allegedly withdrew Bitcoin did so using third-party Bitcoin wallets such as Trust Wallet and ViaBtc, as well as hardware wallets like Ledger.

Moreover, the Bitzlato timeline for restarting operations and regaining user access inspired the company to provide a 50% withdrawal option. The plan for Bitzlato is to keep fixing the platform and launch a P2P cryptocurrency trading business by early April 2023. Some Bitzlato investors have decided to hold off on taking their first 50% withdrawal until the exchange re-enables P2P trading. 

Recommended For You:

MetaMask Institutional Introduces New Solo ETH Staking Marketplace