Highlights
- US authorities charge two Russian Nationals in a massive crypto money laundering scheme.
- $10 million bounty offered for information leading to their arrest or conviction.
- The accused are linked to illicit cryptocurrency exchanges facilitating cybercrime and ransomware.
- Seized websites and servers tied to over $1.4 billion in illegal cryptocurrency transactions.
On Tuesday, U.S. authorities charged two Russian nationals, Sergey Ivanov and Timur Shakhmametov, with running a large-scale crypto money laundering operation linked to cybercrime.
Both men have been accused of laundering millions of dollars through cryptocurrency exchanges tied to illegal activities such as ransomware and cyber theft. As part of the operation, the U.S. Department of State has issued a $10 million bounty for information leading to their arrest or conviction, signaling the gravity of the situation.
International Crackdown on Russian Cybercrime
The U.S. Treasury, in collaboration with international partners, revealed the scope of the charges against Ivanov and Shakhmametov.
Ivanov is accused of operating PM2BTC, a Russian-based exchange deemed a "primary money laundering concern" by the U.S. Financial Crimes Enforcement Network (FinCEN). The operation laundered over $720 million in funds related to Russian cybercrime, including $51 million from ransomware payments. Similarly, Shakhmametov's platform, Cryptex, allegedly processed millions in illicit funds.
Both Russian nationals were tied to a broader network that facilitated transactions for cybercriminals, many of whom relied on anonymous exchanges to move their illicit profits. As part of Operation Endgame, U.S. and Dutch law enforcement agencies seized the domains and servers of PM2BTC and Cryptex.
"These measures aim to protect national security and prevent these financial institutions from accessing the market," said Bradley T. Smith, Acting Undersecretary of the Treasury for Terrorism and Financial Intelligence.
Seized Assets and Sanctions
In addition to the criminal charges, both Russian nationals face sanctions from the U.S. Office of Foreign Assets Control (OFAC).
The sanctions block all assets connected to Ivanov and Shakhmametov in the U.S. and prohibit any American entities from engaging with them. OFAC also identified Cryptex as a platform facilitating large-scale laundering for cybercriminals.
The FBI and Secret Service played pivotal roles in gathering evidence, with officials confiscating over $28 million in cryptocurrency and warning that further actions would follow.
"Cybercriminals may believe they can evade law enforcement through anonymity," said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. "But today's charges prove that we will track and dismantle their operations, regardless of where they are."
Legal Consequences and Future Arrests
The indictment of Ivanov and Shakhmametov represents a major step in tackling international crypto money laundering.
Law enforcement agencies have emphasized that this case could result in further arrests, as the seizure of transaction data from PM2BTC and Cryptex could expose other criminals connected to the scheme.
"The charges against the two Russian nationals showcase how closely we’re monitoring illicit financial systems, and we’re far from done," said a Department of Justice official.
With millions of dollars seized and more investigations underway, the charges highlight the growing scrutiny surrounding cryptocurrency exchanges used by cybercriminals.
Final Notes
This case against Ivanov and Shakhmametov is part of a larger effort to curb cybercrime activities originating from Russia.
U.S. authorities have disrupted two key platforms involved in crypto money laundering, issued significant bounties, and underscored their commitment to prosecuting those involved in transnational crime.
The takedown of these platforms serves as a warning to other cybercriminals that the U.S. and its allies are taking action to dismantle illegal digital financial networks.