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The U.S. government has sanctioned two cryptocurrency exchanges, Cryptex and PM2BTC, for allegedly facilitating cybercrime and money laundering. The sanctions are part of a broader effort to combat Russian money laundering operations and hold accountable those who facilitate illicit activities in the cryptocurrency industry.
The U.S. government has sanctioned two cryptocurrency exchanges, Cryptex and PM2BTC, for allegedly facilitating cybercrime and money laundering.The sanctions are part of a broader effort to combat Russian money laundering operations.A Russian national, Sergey Ivanov, has been charged with conspiracy to commit bank fraud and money laundering, facilitated through his work with sanctioned exchanges.Over $158 million in illicit transactions have been linked to Ivanov's activities, including $8.8 million from ransomware payments and $4.7 million from darknet drug markets.The sanctions may lead to a loss of trust in regulated exchanges, potentially causing an exodus of users and investors to unregulated exchanges.
In a recent move, the United States government has taken steps to crack down on illicit activities facilitated by virtual currency exchanges Cryptex and PM2BTC. The two exchanges were sanctioned by the U.S. Department of State in September 2024, with the aim of combating Russian money laundering operations.
According to a press release published by the Department of Justice (DOJ), the actions taken against Cryptex and PM2BTC are part of a broader effort to combat cybercrime and money laundering. The sanctions were announced in coordination with other federal and international law enforcement partners, highlighting the growing concern over the role of cryptocurrency exchanges in facilitating illicit activities.
At the heart of this story is a Russian national named Sergey Ivanov, also known as "Taleon". Ivanov has been charged with conspiracy to commit bank fraud and money laundering, according to court documents. He allegedly supported the carding website Rescator and laundered proceeds from Joker's Stash, a notorious dark web marketplace.
Ivanov's alleged activities were facilitated through his work with Russian payment and exchange services UAPS, PinPays, and PM2BTC. These exchanges allowed him to handle billions of dollars in transactions between July 2013 and August 2023, with 32% of the traced bitcoin linked to criminal activity. This includes over $158 million from fraud, $8.8 million from ransomware payments, and $4.7 million from darknet drug markets.
The U.S. Secret Service, along with Dutch authorities, seized the domains associated with PM2BTC, UAPS, and Cryptex. The Department of State also announced a reward of up to $10 million for information leading to the arrest or conviction of Sergey Ivanov through its Transnational Organized Crime Rewards Program.
Experts have highlighted the role that cryptocurrency exchanges play in facilitating illicit activities. "FinCEN found that nearly half of PM2BTC’s exchange activity had links to illicit activity, and correspondingly, that PM2BTC facilitates a substantially greater proportion of transactions with apparent links to money laundering activity in connection with Russian illicit finance as compared to 99 percent of other virtual asset service providers," reads the report published by US Treasury.
The sanctions against Cryptex and PM2BTC are part of a broader effort to hold accountable those who facilitate illicit activities. As stated by Pierluigi Paganini, an expert in cybersecurity, "The U.S. government's actions serve as a reminder that cryptocurrency exchanges must take responsibility for ensuring the integrity and security of their platforms."
In recent years, there have been numerous instances of virtual currency exchanges being sanctioned for facilitating illicit activities. The case of Cryptex and PM2BTC serves as another example of the need for greater regulation and oversight in the cryptocurrency industry.
The impact of these sanctions will be felt across the cryptocurrency community, with many experts warning of a potential exodus of users and investors to unregulated exchanges. As one expert noted, "The loss of trust in regulated exchanges can have far-reaching consequences for the entire industry."
In conclusion, the sanctions against Cryptex and PM2BTC serve as a reminder of the need for greater regulation and oversight in the cryptocurrency industry. The case highlights the role that virtual currency exchanges play in facilitating illicit activities and the need for greater accountability from those involved.
The U.S. government has sanctioned two cryptocurrency exchanges, Cryptex and PM2BTC, for allegedly facilitating cybercrime and money laundering. The sanctions are part of a broader effort to combat Russian money laundering operations and hold accountable those who facilitate illicit activities in the cryptocurrency industry.
Related Information:
https://securityaffairs.com/168993/cyber-crime/virtual-currency-exchanges-cryptex-pm2btc-sanctioned.html
https://home.treasury.gov/news/press-releases/jy2616
https://thehackernews.com/2024/09/us-sanctions-two-crypto-exchanges-for.html
Published: Sat Sep 28 01:22:53 2024 by llama3.2 3B Q4_K_M
