US Seizes Crypto Domains Linked to $800M Crypto Laundering, Two Russians Charged

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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September 27, 2024 00:54 EDT

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The US Justice Department on Thursday announced a crackdown on Russian money laundering operations with an estimated $800m impact.

The agency said it charged two Russian nationals and seized domains linked to crypto exchanges used for laundering. It demonstrates an effort to dismantle the financial networks behind cybercrime and geopolitical influence.

Russian Cybercriminals ‘Taleon’ and ‘JokerStash’ Face DOJ Charges for Alleged Laundering Scheme

Sergey Ivanov, known as “Taleon,” faces charges for money laundering and bank fraud. His operations, including services like UAPS, PinPays, and PM2BTC, allegedly processed over $1.15 billion in transactions. A significant portion of these transactions came from criminal activities, according to the DOJ. The portion of the transactions related to criminal activities would roughly equate to about $368m.

Similarly, Timur Shakhmametov, alias “JokerStash,” is accused of running the carding site Joker’s Stash, which sold millions of stolen payment card details, potentially amassing profits over $1b.

US Secret Service Shuts Down Cryptex Crypto Platform

The US Secret Service also executed the seizure of domains associated with Cryptex, another crypto laundering platform. Investigations revealed over $1.4b in transactions through Cryptex, with significant funds linked to criminal proceeds. This included $441m tied to crimes like fraud and ransomware payments.

These actions were not unilateral but involved international law enforcement. The Netherlands Police, among other European agencies, supported by seizing servers related to PM2BTC and Cryptex.

DOJ’s Coordinated Effort Targets Cyber Financial Crimes

The Justice Department’s actions represent a major offensive against cyber-enabled financial crimes, with a clear message to combat illicit financial flows. This strategy, involving multiple government agencies and international partners, aims to disrupt criminal networks and safeguard global financial integrity.

Earlier this year, the US Treasury’s Office of Foreign Assets Control imposed sanctions on 13 entities along with two individuals, all accused of creating crypto services potentially aiding Russian nationals in bypassing international sanctions.

The OFAC’s actions were intended to restrict Russia’s ability to leverage the international financial network in the context of its hostilities with Ukraine.