Bitcoin’s value surged on Friday after the digital currency exchange was suspended by the Bitcoin Foundation following allegations of illicit activity.
The Bitcoin Foundation announced the suspension on Friday.
Bitcoin’s price rose by about $1,500 in early trading following news of the suspension.
The news comes as other exchanges in the US and Europe have been accused of running illegal money-laundering operations.
The move comes after the US Securities and Exchange Commission fined a virtual currency exchange, Coinbase, for failing to prevent money laundering.
In December, the Securities and Futures Commission (SFC) fined a digital currency trading platform, CoinLab, for selling securities with names associated with drug trafficking.
In March, the SFC fined a blockchain startup, Blockchain, $75 million for not reporting $2.7 million in “false or misleading statements” to investors.
The SFC said in a statement that it was “suspending this enforcement action for violations of the SEC’s anti-money laundering rules.”
The SCC also said in its announcement that the company had “failed to comply with its obligations under the Investment Advisers Act of 1940.”
The SEC has taken similar action against digital currency platforms, including Coinbase, earlier this year.
According to the SSC, the platform failed to report $2,000,000 of money-related transactions in the months leading up to the settlement.
In addition, the SEC alleges the platform did not properly manage funds used to buy bitcoin, a cryptocurrency.
The regulator has not announced any charges against the company.
Coinbase said in January that it had reported $1.1 million in suspected money-making activities to the SEC in the preceding 12 months.