US Charges Two Russian Nationals in Money Laundering Scheme Involving Crypto Exchanges

The US government charged two individuals with operating a multi-billion-dollar money laundering scheme. Law enforcement agencies disrupted the global cybercriminal operation and
seized websites associated with illegal crypto exchange activities.

The US Department of Justice, alongside international
partners, took down three cryptocurrency exchanges allegedly used to launder
billions of dollars, particularly for ransomware operators, darknet drug
traffickers, and other cybercriminals, the DOJ reported.

Major Ransomware Operations

The charged individuals of Russian nationality reportedly catered to criminals through their platforms by facilitating
payments for stolen credit card data, ransomware profits, and fraud.

One of the individuals is accused of laundering over
$1.15 billion through cryptocurrency transactions linked to criminal
activities. The indictment reveals that 32% of all traced bitcoins tied to the
individual originated from illicit sources such as ransomware and darknet drug
markets.

The platform reportedly offered data from 40 million
cards and was linked to the major breach of a US retailer in 2013, which cost
the victim over $202 million in damages.

Two Russian Nationals Charged in Connection with Operating Billion Dollar Money Laundering ServicesJustice Department Seizes Web Domains for Multiple Illicit Crypto Exchanges🔗: https://t.co/GgBIR6Jeo1 pic.twitter.com/SRqOlejCs4

— Criminal Division (@DOJCrimDiv) September 26, 2024

“Every step cybercriminals take in their pursuit of
money leaves another track that leads us to their doorstep,” US Attorney
Jessica Aber for the Eastern District of Virginia mentioned. “And if you follow
them on their path of greed, they will lead us to you. We will not stop because
while domains can always be seized, justice is unyielding.”

The DOJ, in collaboration with foreign partners, seized several domain names linked to these illegal operations, including
Cryptex.net. The platform was a cryptocurrency exchange designed to offer complete
anonymity to its users, primarily targeting cybercriminals who sought to bypass
know-your-customer regulations.

Blockchain analysis revealed that 31% of the $1.4
billion transacted through Cryptex came from illicit sources, including
ransomware payments and fraud proceeds. By seizing these domains, US law
enforcement effectively shut down these money laundering operations.

International Cooperation

Elsewhere, the Dutch authorities seized servers linked to the Cryptex
exchange and confiscated $7 million worth of cryptocurrency. The coordinated
effort also included law enforcement agencies from Germany, Latvia, the UK, and
Europol, all of whom contributed to shutting down these illegal operations.

As part of broader efforts to bring the accused to
justice, the US State Department announced reward offers of up to $11 million
for information leading to the arrest of the individuals.

Meanwhile, the Treasury Department’s Financial Crimes
Enforcement Network (FinCEN) identified PM2BTC, one of the laundering
platforms, as a “primary money laundering concern” and sanctioned
both Cryptex and the charged individual.

This article was written by Jared Kirui at www.financemagnates.com.
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