The U.S. government has ramped up its crackdown on Russian crypto crime, targeting two exchanges and individuals linked to illicit finance.
In a coordinated effort involving the Treasury, Justice, and State departments, as well as overseas law enforcement agencies, actions have been taken against PM2BTC, a Russian cryptocurrency exchange, and its associate Sergey Ivanov.
FinCEN identified PM2BTC as a major money laundering concern, alleging that half of its operations are tied to illegal activities, including ransomware proceeds.
Meanwhile, Cryptex, another crypto exchange with Russian ties, was also sanctioned by the Treasury’s Office of Foreign Assets Control (OFAC).
Cryptex, registered in St. Vincent and the Grenadines, is suspected of processing over $720 million in transactions linked to Russia-based ransomware actors, fraud shops, and mixers. It advertises mainly in Russian, raising red flags about its role in supporting cybercriminals.
According to Chainalysis, PM2BTC also shares wallet infrastructure with the underground payment system UAPS, further cementing its ties to illicit activity.
In a significant blow to these operations, U.S. and international authorities, including the Dutch Fiscal Intelligence and Investigation Service, have seized web domains and infrastructure linked to PM2BTC, Cryptex, and Ivanov.
The U.S. Secret Service’s Cyber Investigative Section also played a key role, alongside contributions from firms like Chainalysis and Tether.
As the investigation deepens, documents unsealed in the District Court of Eastern Virginia reveal that Ivanov faces charges of conspiracy to commit bank fraud for his involvement in “carding,” the trading of stolen credit card data.
His associate, Timur Shakhmametov, is charged with bank fraud, access device fraud, and money laundering. To ramp up pressure, the State Department is offering a $10 million reward for information leading to their arrest or conviction.
Interestingly, despite Binance’s claim of a complete exit from the Russian market, it was recently confirmed that the crypto exchange continues to serve a small number of Russian clients, raising questions about its true intentions.
This latest move by the U.S. government signals a serious escalation in the global fight against crypto-enabled crime, proving that the anonymity of digital assets can’t shield criminals forever.
