US indicts two Russians in crypto money laundering scheme, offers $10 million reward

U.S. authorities have indicted Russian nationals Sergei Sergeevich Ivanov and Timur Shakhmametov for allegedly operating a virtual currency money laundering service linked to Russian cybercrime.

The U.S. State Department has issued a $10 million reward for information leading to the arrest or conviction of each.

International crackdown on Russian cybercrime

The U.S. Treasury Department, in conjunction with international partners, has linked two digital currency exchanges, PM2BTC, to a large-scale money laundering operation benefiting ransomware attackers and other cybercriminals operating outside Russia. announced that it had taken actions to disrupt Cryptex's operations.

The Financial Crimes Enforcement Network (FinCEN) designated PM2BTC, which is associated with Ivanov, as a “major money laundering concern.” Additionally, the Office of Foreign Assets Control (OFAC) also sanctioned Ivanov and Cryptex for brokering more than $51 million in ransomware-related transactions and more than $720 million in connection with Russian cybercrime. .

Ivanov has reportedly been involved in Russian cybercrime for more than 20 years, allegedly laundering hundreds of millions of dollars through various payment processing services, including UAPS.

Cryptex also operates primarily in Russia and is said to be involved in laundering money for cybercriminals, including ransomware attackers, fraudulent shops, and exchanges with poor compliance programs.

Law enforcement agencies, including the U.S. Secret Intelligence Service, Dutch police, and the Dutch Financial Intelligence and Investigation Office (FIOD), seized web domains and infrastructure related to PM2BTC and Cryptex. The U.S. Secret Intelligence Service and the U.S. Attorney's Office for the Eastern District of Virginia also released indictments against Ivanov and Shakmametov.

The measure aims to protect national security and the financial system by preventing illegal financial institutions from accessing the market. These are part of Operation Endgame, a multinational initiative aimed at dismantling cybercriminal financial enablers.

Impact of sanctions

OFAC's sanctions block all property and interests of the two suspects in the United States and prohibit any person or entity resident in the country from interacting with them. Meanwhile, FinCEN's order prohibits financial institutions from conducting transactions involving PM2BTC, putting foreign financial institutions involved in this entity at risk of sanctions as well.

Commenting on the situation, Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, said, “The United States and our international partners are committed to ensuring that cybercrime facilitators like PM2BTC and Cryptex do not exist. We remain steadfast in our efforts to deter them from operating with impunity.”

This latest legal impact is part of a broader U.S. effort to combat Russia-based cybercrime. Over the past year, the Treasury Department has sanctioned multiple individuals and entities involved in such activities.

These include members of the native hacktivist group Cyber ​​Army of Russia Reborn, leaders of the LockBit ransomware group, and affiliates of the darknet market Genesis Market, which was busted by law enforcement in early 2023. Included.