TLDR
- DOJ seized domains of 3 crypto exchanges linked to $800+ million in illicit transactions
- Two Russian nationals charged for operating money laundering services
- Exchanges processed $1.15 billion, with 32% tied to criminal activity
- Dutch authorities seized servers and recovered $7 million in crypto
- U.S. Treasury sanctioned individuals and offered rewards for information
The U.S. Department of Justice (DOJ) has taken action against three cryptocurrency exchanges accused of facilitating over $800 million in illegal transactions. This operation is part of a larger effort to disrupt Russian money laundering activities.
On Thursday, the DOJ announced the seizure of domains linked to UAPS, PinPays, and PM2BTC. These exchanges allegedly processed about $1.15 billion in digital asset transactions.
Blockchain analysis revealed that 32% of the Bitcoin handled by these platforms was connected to criminal activities. This included more than $158 million in fraud and over $8.8 million from ransomware payments.
The DOJ, working with the Treasury Department, Secret Service, and international law enforcement partners, has charged two Russian nationals in connection with these activities. Sergey Ivanov, also known as “Taleon,” is accused of running several money laundering services that catered to cybercriminals, including ransomware groups and darknet drug traffickers.
Timur Shakhmametov, or “JokerStash,” allegedly operated Joker’s Stash, one of the largest websites selling stolen payment card data.
Ivanov faces charges of conspiracy to commit and aid and abet bank fraud for providing payment processing services to the carding website Rescator.
He is also charged with conspiracy to commit money laundering for handling proceeds from Joker’s Stash.
In a coordinated effort, Dutch authorities seized the servers hosting PM2BTC and another exchange called Cryptex. They recovered more than $7 million in cryptocurrency during this operation.
Cryptex, which was also tied to money laundering activities, reportedly facilitated transactions worth $1.4 billion. Of this amount, 31% was linked to criminal conduct.
The U.S. Secret Service obtained court authorization to seize the domains of UAPS, PM2BTC, and Cryptex. Visitors to these sites now see a government notice indicating the seizures.
Deputy Attorney General Lisa Monaco emphasized the significance of these actions, stating,
“Today’s actions highlight the Department’s continued disruption of malicious cyber actors and their criminal ecosystem.”
She added that the two Russian nationals charged allegedly profited millions of dollars from extensive money laundering operations.
As part of the crackdown, the U.S. Treasury has imposed sanctions on Ivanov and Cryptex. Additionally, the State Department is offering rewards of up to $11 million for information leading to the arrest of those involved in these illegal activities.
This operation underscores the ongoing efforts of U.S. law enforcement to combat cybercrime and disrupt the financial networks that support illegal activities.
By targeting the cryptocurrency exchanges that facilitate these transactions, authorities aim to cut off a crucial lifeline for cybercriminals and money launderers.
The seizure of these domains and the charges against the Russian nationals represent a significant blow to the infrastructure supporting various forms of cybercrime.
However, it also highlights the ongoing challenges faced by law enforcement in combating illegal activities in the rapidly evolving world of cryptocurrency.
