By Ellen Chang Bitzlato, a crytocurrency exchange, did not require selfies or passports for users to identify themselves. The head of Bitzlato Ltd., a crytocurrency exchange, was arrested for allegedly processing $700 million in illicit funds with Hydra Market, a darknet market. A Russian national who resides in Shenzhen, China, Anatoly Legkodymov was scheduled to be arraigned today in the U.S. District Court for the Southern District of Florida. Legkodymov is the founder and majority shareholder of the crypto exchange and was arrested for his alleged operation of a business that transported a…