U.S. Charges Two Russians in Global Crypto Money Laundering Crackdown

TLDR:

• Two Russian nationals charged by U.S. for crypto-related money laundering
• Websites of three illicit cryptocurrency exchanges seized
• International effort involving multiple countries and agencies
• Charges related to “carding” and facilitating cybercrime
• Over $1 billion in transactions processed through illicit platforms

In a coordinated international effort, U.S. authorities, along with partners from several European countries, have taken action against a global cryptocurrency network linked to Russian sanctions evasion and money laundering.

The operation resulted in charges against two Russian nationals and the seizure of multiple websites associated with illicit cryptocurrency exchanges.

Sergey Ivanov and Timur Shakhmametov were charged by U.S. authorities for their alleged roles in operating money laundering services that catered to cybercriminals using cryptocurrencies. The U.S. Department of State has announced rewards of up to $10 million each for information leading to their arrests.

The charges against Ivanov include one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering. These charges stem from his alleged involvement in providing payment processing support to the carding website Rescator and his connections to the carding website Joker’s Stash. Ivanov is accused of conducting transactions worth over $1.15 billion in value over the past 11 years.

Shakhmametov, known online as “JokerStash” and “Vega,” faces similar charges to Ivanov, with an additional count of conspiracy to commit access device fraud. This additional charge relates to his alleged role in operating the carding website Joker’s Stash, which reportedly offered data from 40 million payment cards annually for sale.

The TOC Rewards Program offers rewards up to $10M each for info leading to the arrests and/or convictions of Russian nationals Timur Shakhmametov and Sergey Ivanov, and up to $1M for information leading to the identification of other leaders of Joker’s Stash, UAPS, PM2BTC, and… pic.twitter.com/1a0wZNb8IU

— US Dept of State INL (@StateINL) September 26, 2024

As part of the operation, U.S. authorities seized websites associated with three illicit cryptocurrency exchanges: Cryptex.net, UAPS, PinPays, and PM2BTC. These platforms are believed to have links to Russia and were allegedly used for payment processing and exchanging cryptocurrencies obtained through illegal activities.

The U.S. Secret Service played a crucial role in the operation, seizing two website domain names used to support the cryptocurrency money laundering exchange “Cryptex.net.” According to authorities, this platform facilitated approximately 37,500 transactions amounting to $1.4 billion.

The international nature of this operation highlights the growing cooperation between law enforcement agencies worldwide in combating cryptocurrency-related crimes. Authorities from the Netherlands, Latvia, Germany, and the United Kingdom, along with Europol, participated in this coordinated effort.

U.S. President Joe Biden commented on the operation, stating that it was part of efforts to counter Russian sanctions evasion and money laundering. The president emphasized the involvement of the Department of Justice, the Department of the Treasury, and the U.S. Secret Service in disrupting this global cryptocurrency network.

U.S. Deputy Attorney General Lisa Monaco provided further context, stating that the charged Russian nationals allegedly pocketed millions of dollars from prolific money laundering activities and fueled a network of cybercriminals around the world. Monaco specifically mentioned Ivanov’s alleged facilitation of darknet drug traffickers and ransomware operators.

This operation represents a significant blow to the infrastructure supporting cryptocurrency-based money laundering and sanctions evasion.