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US sanctions Russian crypto platforms for money laundering

GrafaGrafa2024/09/27 04:20
By:Liezl Gambe

The United States government has sanctioned two Russian cryptocurrency exchanges and two individuals for their involvement in alleged illicit financial activities.

The sanctions were a coordinated effort between the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and several overseas law enforcement agencies.

PM2BTC, a Russian crypto exchange, and Sergey Ivanov, who is linked to the exchange, were designated as being of “primary money laundering concern” by FinCEN.

PM2BTC is reportedly involved in processing proceeds from ransomware attacks and other illegal activities, with FinCEN stating that half of its operations are tied to criminal transactions.

According to Chainalysis, the exchange shares wallet infrastructure with UAPS, an underground payment system.

Cryptex, another crypto exchange registered in St. Vincent and the Grenadines, was also sanctioned.

The Treasury stated that Cryptex was linked to over $720 million in transactions related to Russia-based ransomware actors, fraud shops, and other illicit services.

Cryptex is known for lacking proper Know Your Customer (KYC) programs, and its operations were linked to Garantex, a previously sanctioned exchange.

The U.S. Secret Service, Netherlands Police, and Dutch Fiscal Intelligence and Investigation Service were involved in seizing the web domains and infrastructure associated with PM2BTC, Cryptex, and Ivanov.

Chainalysis and Tether also contributed to the operation.

In related legal action, Ivanov has been charged with conspiracy to commit bank fraud in connection with websites engaged in “carding,” the sale of stolen credit card information.

Additionally, Timur Shakhmametov faces multiple charges related to conspiracy and money laundering.

The U.S. State Department is offering a reward of up to $10 million for information leading to the arrest or conviction of Ivanov or Shakhmametov.

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