US Imposes Sanctions on Russian Crypto Laundering Networks

The United States has imposed sanctions on Russian crypto exchanges and individuals involved in money laundering operations tied to cybercriminals. Key figures, including Sergey Ivanov and Timur Shakhmametov, face charges. Additional rewards are offered for information leading to their arrest. Several entities are now under significant scrutiny for facilitating illicit financial activities.

The United States on Thursday imposed sanctions on alleged Russian money laundering operations linked to cybercriminal activities, involving three illegal cryptocurrency exchanges. The Justice Department unsealed an indictment charging Russian national Sergey Sergeevich Ivanov with conspiracy to commit bank fraud and money laundering using stolen credit and debit card information.

According to the department, Ivanov's services have been used by cybercrime marketplaces, ransomware groups, and hackers responsible for significant data breaches at major U.S. companies. Russian national Timur Shakhmametov faced similar charges, the department confirmed.

In a coordinated action, the Treasury Department imposed sanctions on Ivanov and Cryptex, a virtual currency exchange based in Saint Vincent and the Grenadines but operating in Russia. Treasury's Financial Crimes Enforcement Network also identified Russian crypto exchange PM2BTC, associated with Ivanov, as a 'primary money laundering concern' in connection with Russian illicit finance.

The Treasury financial crime bureau stated that PM2BTC's 'unusual obfuscation' methods made it hard to trace illicit transactions. PM2BTC maintains longstanding ties to Russian or Russian-affiliated financial institutions under U.S. sanctions or restrictions. 'The United States and our international partners remain resolute in our commitment to prevent cybercrime facilitators like PM2BTC and Cryptex from operating with impunity,' said Bradley Smith, acting undersecretary for Treasury's terrorism and financial intelligence unit.

At the same time, the State Department announced rewards of up to $10 million each for information leading to the arrest or conviction of Ivanov or Shakhmametov. Rewards of up to $1 million each are also offered for information identifying the leaders of PM2BTC and stolen credit card marketplaces PinPays and Joker's Stash.

(With inputs from agencies.)