DOJ Takes Down Major Money Laundering Platforms Linked to Cybercrime
In a landmark operation, the U.S. Department of Justice (DOJ) has charged two Russian nationals, Sergey Ivanov and Timur Shakhmametov, for allegedly running a vast money laundering network that processed billions through cryptocurrency exchanges. This enforcement action underscores the growing focus on cryptocurrency-related criminal activities, particularly those involving fraud, ransomware, and darknet operations.
Billions Laundered Through Crypto Exchanges
According to the DOJ, Ivanov is accused of managing platforms that facilitated over $1.15 billion in cryptocurrency transactions. His exchange, Cryptex, reportedly enabled users to bypass regulatory requirements, allowing criminals to launder funds anonymously. The investigation revealed that more than 37,500 transactions were linked to bitcoin addresses associated with Cryptex, amounting to approximately 62,586 bitcoin, valued at around $1.4 billion at the time of the transactions.
A significant issue is the source of these funds; approximately $441 million came from addresses tied to illegal activities, including $297 million from fraud and $115 million from ransomware payments. Additionally, Ivanov’s services allegedly supported carding websites, such as Rescator and Joker’s Stash, with the latter estimated to have generated profits between $280 million and $1 billion.
International Collaboration and Seizures
The DOJ’s operation was conducted in collaboration with international law enforcement agencies, including Dutch authorities. They seized servers and cryptocurrency connected to these illicit activities, with Dutch officials confiscating assets valued at over $7 million.
The coordinated actions also included taking offline the servers hosting PM2BTC and Cryptex, which are now no longer operational. Notably, around 28% of the bitcoin processed through Cryptex was sent to U.S.-sanctioned darknet markets and criminal enterprises, highlighting the extensive reach of this laundering network.
This operation marks a significant stride in the fight against cybercrime, showcasing the increasing global effort to regulate cryptocurrency and tackle its use in illegal activities.
