The US DOJ has indicted Sergey Ivanov and Timur Shakhmametov for operating a massive crypto laundering network.
The United States Department of Justice announced that it had indicted two Russians for what it described as a Russian crypto laundering network that involved the laundering of multiple millions of dollars.
The operation involved billions of dollars being laundered through cryptocurrency exchanges. Joker’s Stash and Cryptex were able to facilitate the movement of funds from individuals involved in fraudulent, ransomware, and darknet activities.
US DOJ Busts Russian Crypto Laundering Ring, Seizes $7M in Assets
It was a big win for the United States of America against global cybercrime activities, as they were able to seize servers and approximately seven million dollars’ worth of cryptocurrencies through a coordinated effort with international law enforcement.
The Department of Justice announced the indictment of two Russian nationals for allegedly orchestrating a massive money-laundering enterprise. They claim that it was responsible for the movement of billions of dollars worth of illegal bitcoin transactions.
Indictments have been filed against Russian nationals for engaging in cybercriminal acts using bitcoin exchanges. The State Department and the Treasury, along with foreign law enforcement, coordinated this effort.
DOJ Charges Ivanov and Shakhmametov for Cybercrime Operations
Allegations suggest that Sergey Ivanov and Timur Shakhmametov were in charge of running vast cybercriminal networks that made use of numerous bitcoin exchanges.
According to reports, Ivanov was the operator of platforms that collectively handled more than $1.15 billion worth of cryptocurrency volume, as well as the revenues of fraud chains, malware, and sales of darknet narcotics.
The Department of Justice (DoJ) has stated that these actions represent significant steps in the fight against Russian crypto laundering schemes that pose a threat to financial regulations all around the world.
The official statement suggests that bitcoin addresses linked to criminal activity accounted for 441 million dollars out of the total processed amount. The total sum included 115 million dollars from ransomware and 297 million dollars from fraud chains.
“There have been more than 37,500 transactions involving Bitcoin addresses associated with Cryptex, amounting to a total value of approximately 62,586 bitcoin, or $1.4 billion at the time the transactions were made.”
Cryptex Exchange Facilitated Darknet Market Transactions, DOJ Says
Cryptex, Ivanov’s cryptocurrency exchange allowed users to circumvent Know Your Customer (KYC) rules, hence enabling anonymity for illicit activity. Ivanov’s carding sites, which include Rescator and Joker’s Stash, are a part of the Russian crypto laundering operations. The operator of Joker’s Stash is allegedly Shakhmametov.
The website reportedly made between $280 million and more than $1 billion in profits by selling stolen payment card information. The Department of Justice, with the assistance of law enforcement officials in the Netherlands, took action, including the seizure of servers and bitcoin that were involved in the criminal operations it was investigating.
Furthermore, Cryptex delivered about 28 percent of the Bitcoins to darknet markets and criminal organizations sanctioned by the United States Department of Justice.
The enormous number of illegal transactions that Cryptex facilitates exemplifies the function that it plays in assisting users in evading surveillance. This helps law enforcement agencies crack down on criminal activity involving cryptocurrencies.
