U.S. Files Charges Against Two Russians in Crypto Exchange Money Laundering Scheme
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The U.S. government has accused two people of operating a money laundering scheme worth billions of dollars, as stated by the Department of Justice (DOJ). The agency announced that law enforcement worked with international partners to break up a worldwide cybercrime network.
According to the update, several websites involved in illegal cryptocurrency exchange activities were seized as part of the operation. The Department of Justice said these platforms were critical to facilitating criminal transactions worldwide, the agency added.
The DoJ Accused Some Platforms Of Enabling Illegal Cryptocurrency Transfers
The Department of Justice revealed that these restricted platforms allowed criminals to transfer illicit funds using cryptocurrencies. It added that this act enabled various illegal activities such as ransomware attacks and the sale of stolen credit card data.
According to the Department of Justice, two Russian nationals were charged in this case. The indictment says they helped with payments related to illegal activities, including fraud and earnings from ransomware.
One individual is charged with laundering more than $1.15 billion through cryptocurrency transactions. The Department of Justice stated that this person was instrumental in handling illegal money by using cryptocurrencies to hide its sources.
The agency further revealed that 32% of all bitcoins traced to this individual came from illegal sources such as ransomware attacks and darknet drug markets. One of the platforms linked to the individual reportedly offered data from 40 million credit cards.
The Department of Justice stated that this platform was connected to a major 2013 data breach at a U.S. retailer, which cost the company over $202 million in damages. The breach is considered one of the largest in U.S. history.
U.S Attorney Reveal Cybercriminals Leaves Clues That Leads Straight To Them
In a statement, U.S. Attorney Jessica Aber for the Eastern District of Virginia said every move cybercriminals make in their quest for money laundry leaves a trail that leads straight to them. Aber added that justice will follow criminals wherever their money trail leads.
The agency stated that various domain names related to the illegal operations were confiscated. Cryptex.net, one of the involved platforms, was a cryptocurrency exchange intended to offer total anonymity to its users.
Cryptex.net specifically targeted cybercriminals who wanted to avoid know-your-customer (KYC) regulations. Blockchain analysis revealed that 31% of the $1.4 billion transacted through Cryptex came from illicit sources, including ransomware payments and fraud, the DOJ added.
Dutch law enforcement also played an important part, seizing servers linked to Cryptex and confiscating $7 million in cryptocurrency. The DOJ noted that this operation involved teamwork from law enforcement agencies in Germany, Latvia, the UK, and Europol.
The U.S. State Department revealed rewards of as much as $11 million for tips that result in the arrest of the accused. According to the DOJ, these rewards are meant to encourage public support in locating the suspects.
