YEREVAN (CoinChapter.com) — The U.S. government has imposed sanctions on two Russian individuals and two cryptocurrency exchanges for their alleged involvement in money laundering activities. Consequently, the coordinated efforts by the U.S. Treasury, Justice, and State Departments, along with international law enforcement agencies, aim to disrupt the flow of illicit finances through these crypto platforms.
Identifying Key Players in Money Laundering
FinCEN, a bureau of the Treasury Department, has labeled PM2BTC, a cryptocurrency exchange, as a primary concern for money laundering. Consequently, Sergey Ivanov, associated with PM2BTC, and the Cryptex exchange are now under U.S. sanctions. According to investigations, PM2BTC has processed funds derived from ransomware attacks and other illegal sources, linking nearly half of its transactions to these activities.
U.S. Sanctions on Russian Crypto Activities. Soure: U.S. Department of the Treasury Analyzing the Scope of Illegal Transactions
Investigations reveal that PM2BTC collaborates with the Universal Anonymous Payment System (UAPS), a network known for underground payments. Cryptex, registered in St. Vincent and the Grenadines but operating mainly in Russia, is implicated in transactions worth over $720 million. These transactions involve entities often used by cybercriminals, including mixing services and exchanges without robust KYC (Know Your Customer) protocols.
The U.S. Secret Service Cyber Investigative Section, along with the Netherlands Police and the Dutch Fiscal Intelligence and Investigation Service, has played a pivotal role in seizing domains and disrupting the infrastructure that supports PM2BTC and Cryptex.
Legal Proceedings and Charges
Notably, the Eastern Virginia District Court has unsealed documents that charge Sergey Ivanov and Timur Shakhmametov with several counts of bank fraud and money laundering. Consequently, these charges stem from their involvement with websites that facilitate carding—trading stolen credit card information.
DOJ Press Release on Russian Money Laundering Charges. Source: U.S. Department of Justice
The State Department is offering a reward of up to $10 million for information leading to the arrest or conviction of Ivanov or Shakhmametov. This reward also underscores the seriousness of the charges. Additionally, it reflects the U.S. government’s commitment to fighting international financial crimes linked to cryptocurrency networks and money laundering.
State Department Rewards for Russian Cybercrime Information. Source: U.S. Department of State
Above all, this firm action and sanctions against Russian crypto exchanges and individuals highlights the U.S. government’s dedication to stopping the illegal use of digital currencies. Consequently, by focusing on these networks, the U.S. and its international allies work to protect the global financial system. Thus, they aim to mitigate the risks associated with unregulated crypto transactions.
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