US Seizes Crypto Domains Tied to Russian Money Laundering Worth $800 Million

Jimmy Aki
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The US Department of Justice (DOJ) has taken control of several cryptocurrency domains involved in a significant Russian money laundering operation. The domains belong to three crypto exchanges, UAPS, PM2BTC, and Cryptex, which have allegedly facilitated over $800 million in illegal transactions.

Details of the Investigation

In a statement released on September 26, the DOJ revealed that two Russian nationals were charged for their roles in managing this illegal operation. The court-approved seizure of these domains now redirects visitors to government notices explaining that the sites were taken down due to illegal activities.

The DOJ named a Russian Sergey Ivanov, also known as “Taleon,” one of the key figures behind these illicit operations. Ivanov allegedly managed multiple money-laundering services, including UAPS, PinPays, and PM2BTC.

According to court documents, Ivanov’s services processed more than $1.15 billion in digital asset transactions between July 2013 and August 2024, many of which were tied to ransomware groups, drug traffickers, and other cybercriminals.

Cryptex, another exchange involved in the scheme, reportedly facilitated transactions totaling $1.4 billion, with 31% of those tied to criminal activities. The DOJ specifically seized two domains linked to Cryptex: “Cryptex.net” and “Cryptex.one.”

The investigation also revealed that approximately 32% of Bitcoin transactions processed through these exchanges were connected to illegal activities, including fraud, ransomware, and darknet drug markets. More than $158 million in Bitcoin was traced back to fraudulent activities, with around $8.8 million linked to ransomware payments.

In addition to the DOJ’s actions, the US Treasury Department has imposed sanctions on Ivanov and Cryptex, further curbing their ability to operate.

Authorities reported that these platforms allowed users to create anonymous accounts without following know-your-customer (KYC) guidelines, making them attractive to cybercriminals.

Deputy Attorney General Lisa Monaco emphasized the significance of the case, stating: “Working with our Dutch partners, we shut down Cryptex, an illicit crypto exchange, and recovered millions of dollars in cryptocurrency.”

Broader Implications for Crypto Crime

Additionally, Timur Shakhmametov was also charged in connection to the case. Shakhmametov is accused of running Joker’s Stash, one of the largest online platforms for selling stolen credit and debit card information.

Shakhmametov allegedly promoted the Joker’s Stash website on various cybercrime forums, contributing to a massive underground market for stolen data.

Meanwhile, the US State Department has offered a reward of $11 million for any information leading to the arrest of individuals involved in the Ivanov or Joker’s Stash operations.

Other cryptocurrency exchanges have also faced similar actions from authorities. In 2021, the DOJ seized domains from the exchange Hydra Market linked to illegal darknet transactions. Similarly, BTC-e, a major exchange, was shut down in 2017 for facilitating over $4 billion in money laundering operations.

The spate of crypto scams has also prompted the US Securities and Exchange Commission (SEC) to crack down on financial fraud and scams on social media. This is owed to the prevalence of fake crypto trading platforms to steal funds from unsuspecting investors.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.