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 global cybercriminal operations 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 two individuals of Russian nationality charged reportedly catered to criminals through their platforms, reportedly 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, also seized several domain names linked to these illegal operations, including Cryptex.net. Cryptex was a cryptocurrency exchange to offer complete anonymity to its users, primarily targeting designed 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 individuals.

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