Estonia's Financial Intelligence Unit partly suspended the operating license of BB Trade Estonia OĆ, the company behind Zondacrypto, blocking the crypto exchange from taking new deposits or signing up new clients.
The Estonian FIU, the country's anti-money laundering authority, announced the decision on May 18, saying the partial suspension doesn't stop existing clients from withdrawing their assets, but the company must bring its operations back into compliance within 30 days or risk losing the license.
The FIU didn't spell out the full compliance failures in the notice, pointing out that the order was issued, among other grounds, under Estonia's Money Laundering and Terrorist Financing Prevention Act and the General Part of the Economic Activities Code Act.
Zondacrypto, formerly known as BitBay, is one of the best-known crypto exchanges in Poland and Central Europe.
- The move follows a widening scandal in Poland as Polish prosecutors are investigating Zondacrypto in a fraud probe, with thousands of users unable to withdraw funds and estimated losses above 350 million zlotys, or about $96 million.
- Polish Prime Minister Donald Tusk told a government meeting that authorities were dealing with a company whose origins were "particularly shady," adding, "It's the Russian mafia and its money involved in organising the Zondacrypto exchange," Reuters reported.