Global Effort Disrupts Russia Linked Network Using Crypto to Evade Sanctions, U.S. Charges Two Russians

Two Russian nationals have been charged by U.S. authorities for their role in a global network to launder money and evade sanctions using crypto.

U.S. authorities also seized websites associated with three illicit cryptocurrency exchanges.

Russian nationals Sergey Ivanov and Timur Shakhmametov have been charged for their involvement in operating money laundering services that catered to cybercriminals using cryptocurrencies, U.S. authorities announced on Thursday.

The U.S. Department of State has announced rewards amounting to $10 million each for information leading to the arrests of Shakhmametov and Ivanov.

U.S. authorities also seized websites associated with three illicit cryptocurrency exchanges, in what was termed a “coordinated international effort” involving authorities in the Netherlands, Latvia, Germany, U.K, Europol, and multiple U.S. agencies. The websites relate to Russia linked payment and exchange platforms Cryptex.net, UAPS, PinPays, and PM2BTC.

A statement from U.S. President Joe Biden on U.S. support for Ukraine said “To counter Russian sanctions evasion and money laundering, the Department of Justice, the Department of the Treasury, and the U.S. Secret Service have taken action today to disrupt a global cryptocurrency network, in coordination with international partners.”

Ivanov conducted transactions worth over $1.15 billion in value in the past 11 years. He was charged with one count of conspiracy to commit bank fraud for providing payment processing support to the carding website Rescator and one count of conspiracy to commit money laundering for carding website Joker’s Stash. The unlawful use of stolen credit and debit card data for fraudulent purposes is known as “carding.”

Shakhmametov, known online as “JokerStash” and “Vega,” was charged with the same offences as Ivanov, but he also faces one count of conspiracy to commit access device fraud for his role in operating the carding website Joker’s Stash, which offered for sale data from 40 million payment cards annually.

“The two Russian nationals charged today allegedly pocketed millions of dollars from prolific money laundering and fueled a network of cyber criminals around the world, with Ivanov allegedly facilitating darknet drug traffickers and ransomware operators,” said U.S. Deputy Attorney General Lisa Monaco.

The operation involving the U.S. Secret Service saw the seizure of two website domain names used to support the cryptocurrency money laundering exchange “Cryptex.net,” where “37,500 transactions” amounting to $1.4 billion were made.

Edited by Parikshit Mishra.