n a significant blow to cybercriminal operations, the U.S. government has sanctioned two cryptocurrency exchanges—Cryptex and PM2BTC—for their alleged role in facilitating money laundering linked to cybercrime. In a coordinated global effort, the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), alongside international law enforcement partners, unsealed an indictment against Sergey Sergeevich Ivanov, a Russian national accused of running a multi-million dollar money laundering operation that provided services to cybercriminals.
Crypto Exchanges Tied to Illicit Activities Cryptex and PM2BTC have been flagged for enabling the laundering of cryptocurrencies, potentially derived from illegal activities like ransomware attacks. Both exchanges allegedly catered directly to cybercriminals, offering anonymous services that bypassed essential compliance measures such as Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols.
According to U.S. authorities, Cryptex facilitated over $51.2 million in transactions derived from ransomware payments and fraud, promoting “complete anonymity” to its users. The platform reportedly processed transactions linked to Russia-based ransomware actors, further embedding itself in the dark web’s ecosystem of fraud shops and illicit exchanges.
PM2BTC, operational since 2014, similarly engaged in money laundering activities. The exchange facilitated large-scale virtual currency-to-ruble conversions, often associated with ransomware and other criminal operations based in Russia. The platform was flagged for its high volume of transactions tied to money laundering, with a focus on obfuscating these illicit activities from detection.
International Law Enforcement Strikes Back The enforcement action, part of a larger crackdown dubbed “Operation Endgame,” involved collaboration between the U.S., the Netherlands Police, and the Dutch Fiscal Intelligence and Investigation Service (FIOD). The operation resulted in the seizure of approximately €7 million ($7.8 million) in cryptocurrencies. Both Cryptex and PM2BTC’s websites have been confiscated, and their domains now display law enforcement seizure banners.
Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized the global commitment to dismantling cybercrime networks. “The United States, in close coordination with international partners, remains steadfast in preventing cybercrime facilitators like PM2BTC and Cryptex from operating with impunity,” Smith stated. “We will continue using all available tools to disrupt these networks.”
Russian Nationals Charged for Cyber Money Laundering In conjunction with the sanctions, a criminal indictment was unsealed against Sergey Ivanov, a 44-year-old Russian national, for his role as a professional money launderer. Ivanov is accused of working with Cryptex, PM2BTC, and other e-crime groups, as well as providing services to drug traffickers. His operations spanned nearly two decades, with notable involvement in facilitating illegal transactions for popular carding websites like Rescator and Joker’s Stash, both notorious for selling stolen credit card data.
Timur Shakhmametov, another Russian national, was also charged for operating Joker’s Stash. The carding marketplace reportedly sold data from nearly 40 million stolen payment cards annually, amassing profits between $280 million and $1 billion.
Global Efforts to Thwart Cybercrime In an effort to further dismantle these criminal networks, the U.S. Department of State has announced rewards of up to $10 million for information leading to the arrests of both Ivanov and Shakhmametov. An additional $1 million reward is being offered for details on other key members associated with these operations, including UAPS, PinPays, and Joker’s Stash.
Blockchain intelligence firm Chainalysis praised the enforcement actions, highlighting the importance of targeting the infrastructure used by cybercriminals to facilitate money laundering. “Shutting down these fraudulent services and disrupting the infrastructure that hosts them is a critical tactic in the fight against transnational cybercrime,” the firm stated.
This high-profile operation is a clear message to illicit actors that governments and international law enforcement agencies are working closely to eradicate cybercrime and money laundering schemes from the cryptocurrency ecosystem.
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