On September 26, OFAC added the cryptocurrency exchange PM2BTC, the Cryptex platform, and their alleged administrator, Russian citizen Sergey Ivanov, to its sanctions list.
According to the agency, both services are linked to money laundering activities involving ransomware operators and other cybercriminals.
The FinCEN determined that nearly half of the transactions processed by PM2BTC were associated with illegal activities. The service anonymously exchanged cryptocurrencies for rubles using financial institutions under US sanctions and did not comply with AML/KYC standards.
Between February 5, 2018, and February 2, 2021, operators and partners of the Trickbot botnet conducted transfers through PM2BTC amounting to at least $4.2 million.
Authorities also traced transactions linked to:
- darknet marketplaces Hydra ($41,361), Ferum Shop ($3.45 million), and other illegal online markets ($600,000);
- the Garantex exchange (approximately $300,000);
- the crypto exchange service Bitzlato (outgoing and incoming transfers totaling more than $695,000).
The exchange Cryptex, registered in Saint Vincent and the Grenadines, also targeted the Russian market. More than $51.2 million of the funds it processed were derived from ransomware attacks.
Over $720 million were linked to darknet marketplaces, mixers, exchanges without KYC, and the sanctioned Garantex.
Sergey Ivanov is accused of laundering hundreds of millions of dollars in virtual currency for various cybercriminals over approximately 20 years. In addition to the aforementioned platforms, he conducted operations through the payment service UAPS.
US and Dutch law enforcement seized the domains and infrastructure of PM2BTC, UAPS, and Cryptex. The US State Department offered up to $10 million for information leading to Ivanov’s arrest.
Earlier, the analytics firm Chainalysis stated in a recent report that Russian crypto laws are aimed at evading sanctions.
Back in March, media reported on a US and UK investigation into Garantex.