US Authorities Seize Cryptocurrency Domains Linked to $2.5 Billion in Illicit Transactions
The US Department of Justice announced on Thursday that it has seized domains associated with three cryptocurrency exchanges that allegedly facilitated over $2.5 billion in illegal transactions. This move was part of a coordinated effort to crack down on Russian money laundering activities.
Working in collaboration with the Treasury Department, Secret Service, and international law enforcement partners, the DOJ unsealed an indictment against Russian national Sergey Ivanov, also known as “Taleon.” Ivanov is accused of operating multiple money laundering services catering to cybercriminals, including ransomware groups and darknet drug traffickers.
Another Russian national, Timur Shakhmametov, or “JokerStash,” was also indicted for running Joker’s Stash, one of the largest carding websites in history that sold stolen payment card data.
Ivanov allegedly ran crypto exchanges such as UAPS, PinPays, and PM2BTC, which processed approximately $1.15 billion in digital asset transactions. Blockchain analysis conducted by authorities revealed that 32% of Bitcoin handled by these exchanges was tied to criminal activity, including fraud worth over $158 million and more than $8.8 million in ransomware payments.
Concurrently, Dutch authorities seized the servers hosting PM2BTC and Cryptex, recovering more than $7 million in cryptocurrency, according to the Justice Department. Cryptex, another money laundering-linked cryptocurrency exchange, facilitated transactions valued at $1.4 billion, with 31% tied to illegal activities, as stated in the indictment.
The US Secret Service obtained court authorization to seize the domains of UAPS, PM2BTC, and Cryptex. Visitors to these sites now encounter a government notice indicating the seizures.
Deputy Attorney General Lisa Monaco emphasized the Department’s ongoing efforts to disrupt malicious cyber actors and their criminal ecosystem. She stated, “Today’s actions highlight the Department’s continued disruption of malicious cyber actors and their criminal ecosystem. The two Russian nationals charged today allegedly pocketed millions of dollars from prolific money laundering.”
Ivanov faces charges of conspiracy to commit and aiding and abetting bank fraud for providing payment processing services to the carding website Rescator. He is also charged with conspiracy to commit money laundering for handling proceeds from Joker’s Stash.
In addition, the US Treasury has sanctioned both Ivanov and Cryptex, while the State Department has offered rewards of up to $11 million for information leading to the arrest of individuals involved in these operations.