- The U.S. targets Russian cybercrime by sanctioning PM2BTC and Cryptex crypto exchanges linked to illicit activities.
- PM2BTC is labeled a “primary money laundering concern” for laundering ransomware funds.
- Sanctions cut off Sergey Ivanov and Cryptex from the U.S. financial system.
- The State Department offers up to $10 million for information on Ivanov.
The U.S. government has stepped up its campaign against Russian cybercrime by naming two Russian nationals and two crypto exchanges linked to illicit financial activities. Working in collaboration with foreign law enforcement, the Department of Treasury-whose efforts were coordinated with the Departments of Justice and State-took a series of measures to dismantle key Russian cybercrime services and protect global financial systems.
According to a press release, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has identified PM2BTC, a Russian virtual currency exchanger, as being of “primary money laundering concern” in connection with illegal Russian finance.
This designation specifically targets Sergey Sergeevich Ivanov, the individual associated with PM2BTC, and Cryptex, a virtual currency exchange registered in St. Vincent and the Grenadines but operating in Russia. In this regard, Ivanov and Cryptex have been designated by the Office of Foreign Assets Control (OFAC), eventually cutting them off from the U.S. financial system.
Bradley T. Smith, Acting Under Secretary for Terrorism and Financial Intelligence said: the United States, together with their allies, will not let cybercrime facilitators like PM2BTC and Cryptex get away with their crimes. This multiagency effort underlines the commitment of the U.S. government to protecting national security and financial system by using proactive sanctions and international cooperation.
Coordinated International Law Enforcement Efforts in Crypto Crime
In addition to the Treasury’s action, domains and infrastructure associated with PM2BTC, UAPS, and Cryptex have been seized by U.S. and international law enforcement, including U.S. Secret Service and the Netherlands Police.
Also, the U.S. Department of State announced it would reward up to $10 million for information leading to Ivanov’s detention. The indictment, as part of such actions unsealed against Ivanov and a second Russian national by the name of Timur Shakhmametov, outlines the legal consequences facing cybercriminals.
FinCEN’s designation of PM2BTC exposes this exchange’s role in laundering funds stemmed from ransomware attacks, among other illicit activities. Similarly, Cryptex has laundered more than $51.2 million in ransomware-related transactions. Ivanov and Cryptex are now the subject of sanctions by OFAC, blocking their assets and not allowing U.S. entities to engage in transactions with them.
These measures epitomize the determination of the U.S. government in its bid to fight against Russian cybercrime while sending a warning to foreign financial institutions that indulge in illicit crypto and other activities relating to Russia’s military-industrial complex.
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