The United States government has taken decisive action against two Russian nationals and two cryptocurrency exchanges involved in alleged illicit financial activities linked to Russia.
The crackdown involved multiple agencies, including the U.S. Treasury Department, the Department of Justice, and the Department of State, in partnership with overseas law enforcement bodies.
Allegations on Russian Exchange PM2BTC
The Treasury’s Financial Crimes Enforcement Network (FinCEN) has identified PM2BTC, a Russian cryptocurrency exchange, as being of “primary money laundering concern.” The exchange, run by Sergey Ivanov, has been implicated in processing the proceeds of ransomware attacks and other criminal activities.
FinCEN has reported that nearly half of PM2BTC’s transactions are linked to illegal operations, making it a significant player in the criminal underworld of finance. Furthermore, PM2BTC shares wallet infrastructure with UAPS (Universal Anonymous Payment System), an underground payment processing network.
Sanctions on Cryptex
In addition, the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Cryptex, another cryptocurrency exchange associated with Ivanov. Cryptex, although registered in St. Vincent and the Grenadines, primarily serves Russian clientele.
The treasury has found that the exchange facilitated over $720 million in transactions linked to Russian ransomware actors and cybercriminal activities. These transactions include connections with fraud shops, mixing services, and exchanges lacking robust Know Your Customer (KYC) programs. Cryptex has also been linked to Garantex, a virtual currency exchange already designated by OFAC.
The authorities have seized the web domains and technical infrastructure tied to both PM2BTC and Cryptex. Blockchain analysis firm Chainalysis and Tether also contributed to the investigation.
‘Carding’
Sergey Ivanov faces serious legal repercussions, with charges of conspiracy to commit and aid bank fraud unsealed in the District Court of Eastern Virginia. His operations, which were tied to “carding”, or the trading of stolen credit card information, have drawn major attention from U.S. authorities. Timur Shakhmametov, another Russian individual, has also been charged with similar crimes, including access device fraud and money laundering.
The U.S. State Department is offering a reward of up to $10 million for information leading to the arrest and conviction of Ivanov or Shakhmametov.
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