In a significant move to tackle international cybercrime, the Justice Department has joined forces with several federal agencies, including the Department of State and the Treasury, as well as global law enforcement partners, to target Russian money laundering activities.
The coordinated actions included unsealing an indictment against a Russian national linked to a network of money laundering services catering to cybercriminals.
In addition, several websites associated with illegal cryptocurrency exchanges were seized in the operation.
Highlighting Cybercrime Disruption
Deputy Attorney General Lisa Monaco emphasized the importance of these actions, stating, “Today’s actions highlight the Department’s continued disruption of malicious cyber actors and their criminal ecosystem.”
She explained that the two Russian nationals named in the indictment allegedly made millions through extensive money laundering operations, helping a vast network of cybercriminals worldwide.
Ivanov, in particular, is accused of aiding darknet drug traffickers and ransomware operators.
Notably, authorities worked alongside Dutch partners to shut down Cryptex, an illicit crypto exchange, recovering millions in cryptocurrency.
Following the Trail of Greed
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia pointed out that every move cybercriminals make leaves behind a trail.
“If you follow them on their path of greed, they will lead us to you,” she warned.
The commitment to justice remains steadfast, even as the technology evolves.
“While domains can always be seized, justice is unyielding,” she added.
The Charges Against Ivanov
Court documents reveal that Sergey Ivanov, known online as “Taleon,” faces serious charges, including conspiracy to commit bank fraud and money laundering.
He is accused of providing payment processing for the carding website Rescator and laundering money from another criminal site, Joker’s Stash.
“Carding” involves the illegal acquisition and sale of stolen credit and debit card information.
Ivanov allegedly operated as a professional cyber money launderer for nearly two decades, marketing his services on exclusive Russian-speaking forums and aiding various cybercriminal enterprises, including ransomware groups and hackers responsible for major data breaches.
Extensive Criminal Network
Ivanov reportedly created several Russian payment and exchange services, such as UAPS, PinPays, and PM2BTC, directly serving criminals.
Blockchain analysis indicates that these services handled about $1.15 billion in transactions from 2013 to 2023.
Alarmingly, 32% of the traced bitcoin sent to these addresses was linked to criminal activity.
For instance, over $158 million came from fraud, while substantial amounts also stemmed from ransomware payments and darknet drug markets.
The U.S. Secret Service has secured court approval to seize domains associated with the UAPS and PM2BTC websites.
Rescator Carding Website
The Rescator carding site is notorious for selling stolen payment card data from U.S. institutions and personally identifiable information (PII) of citizens.
It allegedly offered data from up to 40 million payment cards, causing the victimized retailer significant financial losses and exposing millions to identity theft.
Ivanov’s services were integral to the functioning of Rescator, enabling transactions using bitcoin.
Joker’s Stash and Its Impact
Another key player in this indictment is Timur Shakhmametov, known as “JokerStash.”
He faces multiple charges related to operating the carding site Joker’s Stash, which sold data from around 40 million payment cards each year, totaling hundreds of millions.
The site has been one of the largest carding markets ever, raking in estimated profits ranging from $280 million to over $1 billion.
Shakhmametov, alongside others, promoted Joker’s Stash extensively on various cybercrime forums.
Seizure of Cryptocurrency Exchange Domains
In a separate operation, the U.S. Secret Service executed a seizure order for domains used by the cryptocurrency laundering exchange “Cryptex.net.”
This platform was designed to provide anonymity for users, allowing account registration without any compliance checks.
According to blockchain analytics, Cryptex was involved in over 37,500 transactions totaling around 62,586 bitcoin, which was valued at approximately $1.4 billion at the time.
Notably, 31% of the bitcoin sent to Cryptex was linked to criminal activities.
Collaborative Efforts and Next Steps
The seizure of these domains will prevent their continued use for money laundering, and visitors to the sites will now see messages indicating federal action.
Dutch law enforcement has also contributed by seizing the servers hosting PM2BTC and Cryptex, effectively taking them offline and recovering over $7 million in cryptocurrency.
In addition to the Justice Department’s initiatives, the U.S. Department of State has offered rewards up to $11 million for information leading to the arrests and convictions of those involved in these criminal enterprises.
Meanwhile, the Treasury’s Financial Crimes Enforcement Network (FinCEN) has labeled PM2BTC as a significant money laundering concern related to Russian illicit finance, and sanctions have been imposed on Cryptex and Ivanov.
The U.S. Secret Service Cyber Investigative Section is actively pursuing this case, with prosecutors from the Eastern District of Virginia leading the charge against Ivanov and Shakhmametov.
Other agencies and international law enforcement partners have also played crucial roles in this extensive investigation.
As this crackdown continues, the coordinated efforts signal a robust commitment to combating cybercrime and ensuring justice for those affected.
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