US Seizes Crypto Domains Tied to $2.5 Billion in Illicit Transactions

The U.S. Division of Justice stated Thursday it seized domains linked to a few crypto exchanges accused of facilitating greater than $2.5 billion in illicit transactions as a part of a coordinated crackdown on Russian cash laundering operations.

The DOJ, working with the Treasury Division, Secret Service, and worldwide regulation enforcement companions, unsealed an indictment in opposition to Russian nationwide Sergey Ivanov, in response to a statement.

Ivanov, also referred to as “Taleon,” is accused of working a number of cash laundering providers that catered to cybercriminals, together with ransomware teams and darknet drug traffickers.

U.S. authorities additionally indicted Russian nationwide Timur Shakhmametov, or “JokerStash,” accusing him of working Joker’s Stash, one of many largest carding web sites in historical past, which bought stolen cost card information.

Ivanov allegedly operated crypto exchanges reminiscent of UAPS, PinPays, and PM2BTC, which processed roughly $1.15 billion in digital asset transactions. 

Blockchain evaluation carried out by the authorities revealed that 32% of Bitcoin dealt with by the exchanges had been tied to felony exercise, together with over $158 million in fraud and greater than $8.8 million from ransomware funds.

Along with U.S. actions, Dutch authorities seized the servers internet hosting PM2BTC and Cryptex, recovering greater than $7 million in crypto, the Justice Division alleged.

Cryptex, one other crypto alternate tied to cash laundering, facilitated transactions value $1.4 billion, of which 31% had been linked to felony conduct, in response to the indictment.

The U.S. Secret Service obtained court docket authorization to grab the domains of UAPS, PM2BTC, and Cryptex. Guests to the websites now see a authorities discover indicating the seizures.

“At present’s actions spotlight the Division’s continued disruption of malicious cyber actors and their felony ecosystem,” Deputy Lawyer Basic Lisa Monaco stated within the assertion. “The 2 Russian nationals charged immediately allegedly pocketed hundreds of thousands of {dollars} from prolific cash laundering.”

Ivanov is charged with one depend of conspiracy to commit and aiding and abetting financial institution fraud for offering cost processing providers to the carding web site Rescator. He is additionally charged with one depend of conspiracy to commit cash laundering for dealing with proceeds from Joker’s Stash.

The U.S. Treasury additionally sanctioned Ivanov and Cryptex, whereas the State Division supplied rewards of as much as $11 million for info resulting in the arrest of these concerned.