DOJ Seizes Crypto Exchanges

The U.S. Department of Justice (DOJ) has taken decisive action against illicit crypto activities. On Thursday, the DOJ announced the seizure of domains linked to three cryptocurrency exchanges accused of facilitating over $800 million in illegal transactions. This move is part of a coordinated crackdown on Russian money laundering operations involving multiple federal agencies and international law enforcement partners.

Crackdown on Russian Money Laundering

In collaboration with the Treasury Department and the Secret Service, the DOJ unsealed indictments against Russian nationals Sergey Ivanov and Timur Shakhmametov. Ivanov, also known by the alias “Taleon,” is accused of operating several money laundering services catering to cybercriminals. Including ransomware groups and darknet drug traffickers. Shakhmametov, or “JokerStash,” allegedly ran Joker’s Stash, one of the largest carding websites in history that sold stolen payment card data.

Illicit Crypto Exchanges Identified

Ivanov reportedly operated crypto exchanges like UAPS, PinPays, and PM2BTC. Which processed approximately $1.15 billion in digital asset transactions. Blockchain analysis revealed that 32% of Bitcoin handled by these exchanges was tied to criminal activities. Including over $158 million linked to fraud and more than $8.8 million from ransomware payments. These platforms allegedly provided a safe haven for criminals to launder money without stringent Know Your Customer (KYC) protocols.

International Efforts and Seizures

Dutch authorities joined the U.S. in this extensive operation by seizing servers hosting PM2BTC and Cryptex. Recovering more than $7 million in cryptocurrency. Cryptex, another exchange tied to money laundering, facilitated transactions worth $1.4 billion, with 31% connected to criminal conduct. The U.S. Secret Service obtained court authorization to seize the domains of UAPS, PM2BTC, and Cryptex. Visitors to these sites are now greeted with government notices indicating the seizures.

Legal Actions and Charges

Deputy Attorney General Lisa Monaco emphasized the significance of these actions, stating, “Today’s actions highlight the Department’s continued disruption of malicious cyber actors and their criminal ecosystem.” Ivanov faces charges of conspiracy to commit and aid and abet bank fraud for providing payment processing services to the carding website Rescator. He is also charged with conspiracy to commit money laundering for handling proceeds from Joker’s Stash.

Sanctions and Rewards

The U.S. Treasury has sanctioned Ivanov and Cryptex, adding another layer of penalties. Additionally, the State Department is offering rewards of up to $11 million for information leading to the arrest of those involved. These measures aim to dismantle the networks enabling large-scale cybercrime and financial fraud.

The coordinated efforts between U.S. federal agencies and international partners mark a significant step in combating crypto-related crimes. By seizing these exchanges and indicting key figures like Ivanov and Shakhmametov, authorities are sending a strong message against the misuse of digital assets for illegal activities. As the crypto industry evolves, such crackdowns highlight the importance of regulatory compliance and the ongoing battle against cybercrime.