US sanctions Russian crypto platforms for money laundering ties

The United States authorities has taken action against 2 Russians and 2 cryptocurrency exchanges tied to alleged illicit Russian finance. The departments of nan Treasury, Justice and State were involved, on pinch an assortment of overseas rule enforcement agencies.

The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) identified PM2BTC, a Russian cryptocurrency exchange, and Sergey Ivanov, who is associated pinch that exchange, arsenic being of “primary money laundering concern.” At nan aforesaid time, Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Ivanov and different crypto exchange, Cryptex.

Crypto exchanges to nan underworld

PM2BTC is alleged to process nan proceeds of ransomware attacks and different illicit activities. Half of its activities are linked to forbidden operations, according to FinCen. According to Chainalysis, PM2BTC shares wallet infrastructure pinch UAPS (Universal Anonymous Payment System), an underground costs processing system.

Cryptex is registered successful St. Vincent and nan Grenadines but advertises successful Russian. According to nan Treasury:

“Cryptex is besides associated pinch complete $720 million successful transactions to services often utilized by Russia-based ransomware actors and cybercriminals, including fraud shops, mixing services, exchanges lacking KYC programs, and OFAC-designated virtual rate speech Garantex.” 

Sources of Cryptex business. Source: Chainalysis

The Treasury Department acknowledged nan US Secret Service Cyber Investigative Section, the Netherlands Police and nan Dutch Fiscal Intelligence and Investigation Service for seizing web domains and infrastructure associated pinch PM2BTC, Cryptex and Ivanov. Chainalysis said that it and Tether besides contributed to nan effort.

Related: Binance continues to service Russian users contempt 2023 exit

Links to “carding”

In documents unsealed successful nan District Court of Eastern Virginia, Ivanov was charged pinch 1 count of conspiracy to perpetrate and assistance and abet slope fraud successful relationship pinch websites that prosecute successful “carding,” aliases trading successful stolen in installments paper information.

Timur Shakhmametov was charged pinch 1 count of conspiracy to perpetrate and assistance and abet slope fraud, 1 count of conspiracy to perpetrate entree instrumentality fraud, and 1 count of conspiracy to perpetrate money laundering successful relationship pinch nan aforesaid operations.

Source: US Department of State

The State Department is offering a reward of up to $10 cardinal for accusation starring to nan apprehension and/or condemnation of Ivanov aliases Shakhmametov. 

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