Seized exchange Bitzlato allows users to withdraw 50% of Bitcoin

cointelegraph.com:

Russia-linked cryptocurrency exchange Bitzlato has managed to partly restore access to user funds despite being officially seized by European authorities.

Bitzlato has enabled its users to withdraw up to 50% of assets that were stuck on the platform due to enforcement from the United States and Europol, the firm announced on its Telegram channel on March 20.

According to the statement, Bitzlato users are now able to restore a half of their assets using the Telegram bot @bz_phoenix_bot, which allows users to move assets from the web Bitzlato account to an external wallet or an exchange.

All withdrawals from Bitzlato are processed in Bitcoin (BTC) as the platform converted all altcoin holdings by users into BTC at the time the service was halted on Jan. 18. According to the firm, Bitzlato had to convert user balances into Bitcoin due to technical difficulties associated with servicing multiple altcoins after Bitzlato was seized.

In a public Bitzlato chat, a number of alleged Bitzlato users said that they were able to move out their Bitcoin to exchanges like ByBit and Binance. Some alleged Bitzlato clients also reportedly used software wallets like Trust Wallet and ViaBtc, as well as hardware wallets like Ledger to withdraw their Bitcoin.

Bitzlato’s 50% withdrawal option follows its previously announced roadmap on restoring users’ access to the platform and resuming operations. According to the plan, Bitzlato will continue its work to restore the platform and aims to provide a service for peer-to-peer (P2P) cryptocurrency trading by early April 2023.

A number of users have preferred to not withdraw 50% of their assets from Bitzlato this time, opting to wait until the exchange will restore P2P trading. Once the P2P platform is