The US Takes Action Against Cryptocurrency Exchanges Used by Russian Cybercriminals
In a significant move to combat illicit activities, the US government has imposed sanctions on cryptocurrency exchanges allegedly used by Russia-based cybercriminals. The US Office of Foreign Assets Control (OFAC) has targeted Cryptex, a crypto exchange based in St. Vincent and the Grenadines but operating in Russia. Additionally, sanctions were placed on Sergey Sergeevich Ivanov, a Russian citizen associated with the virtual currency exchanger PM2BTC.
Ivanov, known for facilitating payments for fraudulent activities through various payment processing services, has been a key player in processing illicit funds for cybercriminals. The Treasury’s Financial Crimes Enforcement Network (FinCEN) has also identified PM2BTC as a significant money laundering concern in connection with Russian illicit finance.
As a result of these sanctions, all assets and property belonging to the designated individuals and entities in the US or controlled by US persons are blocked and must be reported to OFAC. Any transactions with these sanctioned parties could lead to legal repercussions for financial institutions and individuals involved.
A Hunt for Justice
The US Department of State has offered a reward of up to $10 million for information leading to the capture or conviction of Ivanov. In a collaborative effort with Dutch law enforcement, US authorities have seized web domains and infrastructure linked to PM2BTC, UAPS, and Cryptex.
Cracking Down on Cybercrime
The sanctioned entities have been accused of processing hundreds of millions of dollars originating from cybercriminal activities. Cryptex, for instance, has received over $51.2 million from ransomware attacks and is associated with transactions totaling over $720 million to services frequently used by Russia-based ransomware actors and cybercriminals.
Ivanov has been implicated in laundering vast sums of virtual currency for ransomware groups, darknet vendors, and other criminal actors over the past two decades. His involvement with various fraud shops, including Genesis Market, underscores the extent of his illicit activities.
These actions by the US government follow a series of legal efforts to combat Russia-based cybercrime, including the recent conviction of individuals associated with the LockBit ransomware group. With Operation Cronos targeting key figures like Dmitry Yuryevich Khoroshev, law enforcement agencies are intensifying their efforts to dismantle cybercriminal networks.