Bitzlato’s Partial Asset Restoration

In a surprising turn of events, the cryptocurrency exchange Bitzlato has announced that it has partially restored access to user funds, allowing withdrawals of up to 50% of assets. This announcement, made via their Telegram channel on March 20, comes even though the platform is officially under the watchful eye of European authorities.

How to Withdraw Assets

Users wishing to access their funds can now do so through a Telegram bot named bz_phoenix_bot. This handy tool enables the transfer of assets from the web Bitzlato account to external wallets or exchanges. Just a heads-up: all withdrawals are being processed in the number one cryptocurrency, Bitcoin (BTC). Now, this might sound odd, but when services were halted back on January 18, Bitzlato had to convert all altcoin holdings into Bitcoin. Apparently, managing a medley of altcoins was just too much for them after the seizure.

User Experiences with Withdrawals

According to some alleged Bitzlato users in a public chat, they have successfully transferred their Bitcoin to various exchanges like ByBit and Binance. Others have opted for software wallets such as Trust Wallet and ViaBtc, or hardware wallets like Ledger to secure their funds. It’s almost like a game of financial musical chairs—whoever can sit down first gets to keep their Bitcoin!

Future Plans and P2P Trading

While some users are taking the plunge and withdrawing half of their assets, others are biding their time, waiting for Bitzlato to relaunch its peer-to-peer (P2P) trading platform. Once it’s back up, users will regain access to all the features they once loved. However, according to Bitzlato’s spokesperson, once the P2P service is restored, the second half of the funds won’t automatically follow. Because, apparently, in the world of crypto, taking half a loaf is a bit better than getting none at all.

What About the Remaining Funds?

Many users still find themselves wondering about the fate of the other 50% of their assets. The spokesperson cautioned that the issue regarding client funds remains unresolved. The plan is to either restore access to funds seized by Europol or possibly recoup losses from the company’s own resources. They mentioned:

“Lawyers have disputed the decision of the French government, and if the outcome is favorable, the funds will be returned… If it does not work out, the users have to wait until the firm earns enough to compensate for the losses.”

The Broader Context

This predicament isn’t just an isolated issue for Bitzlato; it comes in the wake of a broader crackdown on crypto exchanges. Back in mid-January, the United States Department of Justice orchestrated a heavy-handed international enforcement action against Bitzlato, leading to European authorities seizing over $19 million in crypto.