The US Department of Justice announced it had indicted two Russians for what it said was a multi-million-dollar money Russian crypto laundering ring, an operation that ran billions of dollars through cryptocurrency exchanges.
Cryptex and Joker’s Stash facilitated money transfers from users involved in fraud, ransomware, and darknet activities.
DOJ Busts Russian Crypto Laundering Ring, Seizes $7M in Assets
In a coordinated effort with international law enforcement, the US was able to seize servers and about $7 million in cryptocurrency-a huge victory against global cybercrime efforts.
The DoJ announced the indictment of two Russian nationals for allegedly running a massive money-laundering operation. According to them it moved billions of dollars in illicit cryptocurrency transactions. Russian nationals are indicted for cybercriminal activities made through cryptocurrency exchanges.
This was part of a coordinated effort with international law enforcement and U.S. agencies, including State and Treasury.
DOJ Charges Ivanov and Shakhmametov for Cybercrime Operations
Sergey Ivanov and Timur Shakhmametov have been charged with operating far-reaching cybercriminal networks using cryptocurrency exchanges.
Ivanov is said to have run platforms that hosted more than $1.15 billion in cryptocurrency volume, proceeds of fraud chains, ransomware, and darknet narcotics sales. The DoJ said the moves mark important steps in pushing back against Russian crypto laundering operations that threaten financial rules around the world.
According to the official statement:
“There have been more than 37,500 transactions involving Bitcoin addresses associated with Cryptex, amounting to a total value of approximately 62,586 bitcoin, or $1.4 billion at the time the transactions were made.”
Of that amount processed, 441 million dollars could be attributed to cryptocurrency addresses linked to criminal activity. The amount included 297 million dollars from fraud chains and 115 million dollars from ransomware. Ivanov’s exchange, Cryptex, enabled users to bypass KYC requirements, providing anonymity for criminal activities.
Cryptex Exchange Facilitated Darknet Market Transactions, DOJ Says
Russian crypto laundering operations include Ivanov’s carding sites including Rescator and Joker’s Stash – the latter was allegedly operated by Shakhmametov. The website sold stolen payment card data and generated estimated proceeds ranging from $280 million to more than $1 billion. The action by the DoJ, with assistance from law enforcement authorities in the Netherlands, included the seizure of servers and cryptocurrency entwined in the illegal schemes.
As per DoJ:
“As part of the coordinated actions taken today, our Dutch partners seized the servers hosting PM2BTC and Cryptex. Those servers have been taken offline at various locations around the world, and the Dutch have seized cryptocurrency from those servers worth over $7 million.”
Furthermore, it was revealed that approximately 28% of the Bitcoins sent by Cryptex were transferred to US-sanctioned darknet markets and criminal entities. Cryptex’s high volume of illicit transactions highlights its role in helping users avoid surveillance. This aids law enforcement in cracking down on cryptocurrency crime.
Teuta
Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.
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