27.09.2024 10:32
The U.S. government imposed sanctions on two cryptocurrency exchanges and two individuals linked to illegal Russian financing. The PM2BTC and Cryptex exchanges were associated with ransomware proceeds and cybercrime. This move highlights the increasing regulatory pressure in the cryptocurrency world.
The U.S. government is strengthening its fight against illegal activities in the cryptocurrency world. Through a joint operation by the Treasury, Justice, and State Departments, two cryptocurrency exchanges and two individuals with Russian connections have been added to the sanctions list. PM2BTC and Cryptex exchanges are alleged to have processed revenues from ransomware attacks and other cybercrimes. This development brings the discussions on the regulation of digital assets back to the forefront.
SEC Punishes Another Cryptocurrency Platform
The Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury has described the Russian cryptocurrency exchange PM2BTC and its associated individual Sergey Ivanov as a "priority money laundering concern." The Treasury's Office of Foreign Assets Control (OFAC) has also imposed sanctions on Ivanov and another cryptocurrency exchange, Cryptex.
According to FinCEN's statement, PM2BTC is alleged to have processed revenues from ransomware attacks and other illegal activities. It is emphasized that half of the exchange's activities are linked to illegal operations. Blockchain analysis firm Chainalysis revealed that PM2BTC shared its wallet infrastructure with an underground payment processing system called UAPS (Universal Anonymous Payment System).
Regarding Cryptex, which is registered in St. Vincent and the Grenadines but advertises in Russian, the Treasury Department stated, "Cryptex is also associated with over $720 million in transactions related to services frequently used by Russia-based ransomware actors and cybercriminals. These services include fraud sites, mixing services, exchanges without KYC programs, and the virtual currency exchange Garantex, which is sanctioned by OFAC."
The Treasury Department thanked the U.S. Secret Service Cyber Investigation Division, the Dutch Police, and the Dutch Financial Intelligence and Investigation Service for seizing the domains and infrastructure associated with PM2BTC, Cryptex, and Ivanov. It was noted that Chainalysis and Tether also contributed to this effort.
Documents filed in the U.S. District Court for the Eastern District of Virginia revealed that Ivanov is facing charges of aiding and abetting bank fraud in connection with websites involved in the trade of stolen credit card information, known as "carding."
Timur Shakhmametov is also facing charges of aiding and abetting bank fraud, access device fraud, and money laundering in connection with the same operations.
The State Department is offering a reward of up to $10 million for information leading to the arrest or conviction of Ivanov or Shakhmametov.
These developments strengthen the global trend towards increased legal regulations and oversight in the cryptocurrency world. Particularly, the role of crypto platforms in combating money laundering and cybercrime is becoming a focal point for regulatory agencies.
Cryptocurrency markets may experience fluctuations in the short term due to these sanctions. However, in the long term, such regulatory moves could contribute to making the sector more transparent and reliable.