Sanctions imposed on cryptocurrency platform for alleged role in Russian attacks

The United States government has announced sanctions on a network of individuals and virtual currency exchanges linked to Russian cybercrime activities. This move is part of a broader crackdown on cybercrime that aims to hinder Russian operations before President Joe Biden’s meeting with Ukrainian President Volodymyr Zelenskyy. Among those sanctioned are alleged Russian hacker Sergey Ivanov and Cryptex, a virtual currency exchange registered in St. Vincent and Grenadines and operating in Russia.
Virtual currency exchanges facilitate the trading of cryptocurrencies for various assets, including conventional dollars and other digital currencies. The U.S. Treasury Department claims that Ivanov has been involved in laundering hundreds of millions of dollars in virtual currency for cybercriminals and vendors on the darknet for the past two decades. One of the individuals Ivanov purportedly assisted is Timur Shakhmametov, who allegedly established an online marketplace called Joker’s Stash for trading stolen credit card data and compromised IDs. Ivanov is accused of laundering the proceeds from Joker’s Stash.
To aid in the capture of these individuals, the State Department has announced a $10 million reward for any information leading to their arrest and potential conviction. Additionally, the U.S. Attorney’s Office in Virginia has unsealed an indictment against both Ivanov and Cryptex.
In a statement, President Biden emphasized that the U.S. will intensify pressure on Russia for its actions in Ukraine and work to disrupt the resources available to the Russian defense industry. The meeting between Biden and Zelenskyy includes the announcement of increased security assistance for Ukraine and other initiatives to support the war-torn nation amidst ongoing Russian aggression.
State Department Spokesperson Matthew Miller reiterated the commitment to leveraging all available tools and authorities to combat money laundering networks associated with cybercrime and to impose consequences on cybercriminals and their support systems. The U.S. continues to urge Russia to take decisive measures to prevent cybercriminal activities within its jurisdiction.
Since the onset of the invasion in February 2022, U.S. officials have taken multiple steps against Russian cybercriminals. Earlier this year, the Treasury’s Office of Foreign Assets Control sanctioned 13 entities, including five owned by previously sanctioned individuals, and two individuals engaged in building or operating blockchain services or enabling virtual currency payments within the Russian financial sector, potentially facilitating sanctions evasion.