Legkodymov, a Russian national living in China, was arrested in Miami on Tuesday.
Bitzlato was Labeled as a "Money Laundering Concern" by FinCEN
The action was done in conjunction with the U.S. Treasury Department's Financial Crimes Enforcement Network and foreign authorities, marking the first significant action by the Justice Department's National Cryptocurrency Enforcement Network.

Treasury's Financial Crimes Enforcement Network (FinCEN) said it had prohibited certain transmittals of funds involving Bitzlato by any covered financial institution after labeling Bitzlato Ltd a "money laundering concern" related to illicit Russian finance.
Bitzlato Website Seized by French Authorities
By midday, Wednesday, Bitzlato's website was replaced by a notice saying that the service had been seized by French authorities "as part of a coordinated international law enforcement action."