The U.S. government arrested Anatoly Legkodymov, a Russian national and co-founder of Bitzlato, a Hong Kong-based crypto exchange, on Tuesday, alleging the company facilitated the flow of illicit funds. The unsealed complaint charges Bitzlato with allegedly conducting a money transmitting business that facilitated illicit fund flows for purposes including money-laundering, which totaled more than $700 million in proceeds for a range of cyber criminals. "Institutions that trade in cryptocurrency are not above the law and their owners are not beyond our reach," stated U.S. Attorney Breon Peace. "As alleged, Bitzlato sold itself to criminals as a no-questions-asked cryptocurrency exchange, and…