TLDR
- Two Russian crypto exchanges, PM2BTC and Cryptex, sanctioned by US government
- Two individuals, Sergey Ivanov and Timur Shakhmametov, also sanctioned
- PM2BTC linked to ransomware proceeds and illegal operations
- Cryptex associated with over $720 million in transactions to services used by cybercriminals
- US offering $10 million reward for information leading to arrest of Ivanov or Shakhmametov
The United States government has taken action against two Russian cryptocurrency exchanges and two individuals for their alleged ties to illicit finance.
The Department of the Treasury, Department of Justice, and Department of State worked together on this operation, along with international law enforcement agencies.
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) identified PM2BTC, a Russian cryptocurrency exchange, as a “primary money laundering concern.”
Sergey Ivanov, who is associated with PM2BTC, was also named in the sanctions. At the same time, the Office of Foreign Assets Control (OFAC) sanctioned Ivanov and another crypto exchange called Cryptex.
PM2BTC is accused of processing money from ransomware attacks and other illegal activities. According to FinCEN, about half of the exchange’s operations are linked to illicit activities.
Blockchain analysis firm Chainalysis reported that PM2BTC shares wallet infrastructure with UAPS (Universal Anonymous Payment System), which is known as an underground payment processing system.
Cryptex, while registered in St. Vincent and the Grenadines, advertises its services in Russian. The Treasury Department stated that Cryptex is connected to over $720 million in transactions involving services often used by Russian ransomware actors and cybercriminals.
The TOC Rewards Program offers rewards up to $10M each for info leading to the arrests and/or convictions of Russian nationals Timur Shakhmametov and Sergey Ivanov, and up to $1M for information leading to the identification of other leaders of Joker’s Stash, UAPS, PM2BTC, and… pic.twitter.com/1a0wZNb8IU
— US Dept of State INL (@StateINL) September 26, 2024
These services include fraud shops, mixing services, and exchanges that lack proper Know Your Customer (KYC) programs.
The US government acknowledged the help of several agencies in this operation. The US Secret Service Cyber Investigative Section, the Netherlands Police, and the Dutch Fiscal Intelligence and Investigation Service assisted in seizing web domains and infrastructure associated with PM2BTC, Cryptex, and Ivanov. Chainalysis and Tether also contributed to the effort.
In addition to the sanctions, legal action has been taken against the individuals involved. Documents unsealed in the District Court of Eastern Virginia reveal that Sergey Ivanov has been charged with one count of conspiracy to commit and aid and abet bank fraud.
This charge is related to websites involved in “carding,” which refers to the trading of stolen credit card information.
Timur Shakhmametov faces more serious charges. He has been indicted on one count of conspiracy to commit and aid and abet bank fraud, one count of conspiracy to commit access device fraud, and one count of conspiracy to commit money laundering. These charges are also connected to carding operations.
To aid in the capture of these individuals, the State Department is offering a substantial reward. Up to $10 million is available for information that leads to the arrest and/or conviction of either Ivanov or Shakhmametov.
This action by the US government is part of ongoing efforts to combat the use of cryptocurrency for illegal activities.
By targeting exchanges and individuals involved in money laundering and other financial crimes, authorities aim to disrupt the flow of illicit funds and protect the integrity of the global financial system.
The sanctions and legal actions taken against PM2BTC, Cryptex, Ivanov, and Shakhmametov highlight the growing concern over the use of cryptocurrency exchanges for illegal activities.
