Russian-Linked Cryptocurrency Exchange in Latest Cybercrime Crackdown
Treasury targets a Russian hacker and a virtual currency network accused of laundering millions, as cybercrime enforcement intensifies.
In a sweeping crackdown on Russian cybercrime networks, the U.S. Treasury has imposed sanctions on individuals and virtual currency exchanges linked to Russian cybercriminals. Among the key targets is Sergey Ivanov, a notorious Russian hacker, and Cryptex, a virtual currency exchange operating out of St. Vincent and the Grenadines but primarily serving Russia. This move comes amid heightened tensions between Russia and the U.S. over the ongoing war in Ukraine.
Announced on Thursday, these sanctions are part of a broader U.S. government effort to disrupt financial systems that support Russian cybercrime and potentially assist Russia’s war efforts. As President Joe Biden prepares for a high-profile meeting with Ukrainian President Volodymyr Zelenskyy, these sanctions are intended to increase pressure on Russia's economy and defense base, signaling the U.S. commitment to counter Russian aggression.
The U.S. Treasury has accused Ivanov of laundering hundreds of millions of dollars in virtual currency over the past 20 years, often for cybercriminals and darknet marketplaces. One of his alleged partners is Timur Shakhmametov, the creator of Joker’s Stash, an infamous online marketplace for stolen credit card data and compromised IDs. According to the Treasury, Ivanov played a pivotal role in laundering the proceeds from Joker’s Stash, further entrenching his network in global cybercrime operations.
In a statement, President Biden underscored the importance of these measures, asserting that the U.S. “will continue to raise the costs on Russia for its war in Ukraine and to deprive the Russian defense industrial base of resources.” This action follows a series of steps taken by U.S. authorities to crack down on cybercriminals with ties to Russia since the country’s invasion of Ukraine in February 2022.
The U.S. State Department has also stepped in, offering a $10 million reward for information leading to the arrest and conviction of Ivanov and Shakhmametov. Meanwhile, the U.S. Attorney’s Office in Virginia has unsealed an indictment against the two men, further ramping up pressure on the criminal network.
State Department spokesperson Matthew Miller emphasized that these sanctions represent a comprehensive approach to combating Russian cybercrime. "We will continue to use all our tools and authorities to deter and expose these money-laundering networks and impose costs on the cyber criminals and support networks," Miller said. "We reiterate our call that Russia must take concrete steps to prevent cyber criminals from freely operating in its jurisdiction."
This is not the first time the U.S. has acted against Russian cybercriminals and their cryptocurrency connections. Earlier this year, the Treasury's Office of Foreign Assets Control (OFAC) sanctioned 13 firms, five of which were owned by a previously sanctioned individual. These firms were accused of facilitating blockchain-based services and enabling virtual currency payments within Russia's financial sector, contributing to sanctions evasion efforts.
As tensions between Russia and Ukraine escalate, the sanctions against Ivanov and Cryptex serve as a reminder that the U.S. is increasingly focused on cutting off financial support for cybercrime networks that operate with apparent impunity under Russian jurisdiction.
photo source / Blockonome
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