The U.S. Department of Justice (DOJ) has taken over the websites of three cryptocurrency exchanges—UAPS, PM2BTC, and Cryptex—as part of a broad campaign against international criminality. These platforms were allegedly connected to Russian operations that entailed the laundering of approximately $800 million.
U.S. authorities confiscated the domains with court approval, and now when users try to access the sites, they are greeted with official notices announcing the confiscation because of illicit activity.
Principal Charges Made Public
Two Russian citizens were charged by the DOJ on September 26 for their roles in a massive money laundering conspiracy linked to a global network of cybercriminals. Recently made public court records accuse Sergey Ivanov, also going by the nickname “Taleon,” of planning different money laundering schemes for hackers, such as ransomware organisations and darknet drug dealers.
It is said that Ivanov ran a number of exchange and payment services with a Russian base, including PM2BTC, PinPays, and UAPS. From July 2013 to August 2024, these sites are said to have enabled transactions involving digital assets valued at more than $1.15 billion that were connected to money laundering.
Approximately 31% of the $1.4 billion in transactions processed by another exchange, Cryptex, were connected to illegal activity. The names “Cryptex.net” and “Cryptex.one,” which allowed users to go around traditional know-your-customer (KYC) procedures and give their clients anonymity, were taken by the US authorities. Similar to PM2BTC and UAPS, Cryptex was freely promoted in forums dedicated to cybercrime.
Deputy Attorney General Lisa Monaco stated, “Together with our Dutch counterparts, we have successfully recovered millions in cryptocurrency and shut down Cryptex, an illicit crypto exchange.”
More Indictments and Arrests
Apart from Ivanov, Timur Shakhmametov, a Russian national, was also charged with operating Joker’s Stash, a prominent online carding platform. Shakhmametov is accused of promoting Joker’s Stash, an illicit marketplace that sold stolen credit and debit card data, on multiple cybercrime forums, in a manner similar to how Ivanov advertised his platforms.
Approximately 32% of all traceable Bitcoin transactions made through these exchanges were connected to illegal activity, according to blockchain research. Of these, $8.8 million was linked to ransomware payments, $4.7 million to darknet drug sales, and over $158 million to fraudulent operations.
Governmental Penalties and Benefits
The U.S. Treasury has imposed sanctions on Ivanov and Cryptex in cooperation with the DOJ. Furthermore, the United States State Department has declared a $11 million reward for information resulting in the apprehending of anybody connected to Ivanov or Joker’s Stash.
This operation highlights the U.S. government’s determination to taking down these international criminal businesses and represents a major turning point in the battle against cybercrime and illegal financial transactions.
