US sanctions cryptocurrency exchange network accused of aiding Russia

The U.S. government on Thursday charged two Russian nationals and sanctioned a virtual currency exchange in an effort to crack down on transnational cybercrime involving cryptocurrency.

The departments of Justice, State and Treasury announced the coordinated effort against Russian nationals Timur Shakhmametov and Sergey Ivanov as well Cryptex, a virtual currency exchange accused of servicing Russia-based cyber criminals.

The U.S. is sanctioning Ivanov and Cryptex, according to a release from the Treasury Department, while the Justice Department said Shakhmametov and Ivanov have both been charged with conspiracy to commit and aid and abet bank fraud and conspiracy to commit money laundering.

Shakhmametov is accused of operating an online marketplace for stolen credit card data called Joker’s Stash, while Ivanov is accused of laundering proceeds from Joker’s Stash and other platforms since 2005, the Justice Department said, citing the U.S. Secret Service.

The Department of State is offering a $10 million reward for information that leads to Shakhmametov and Ivanov’s arrest.

“Today’s actions underscore the United States’s commitment, along with our allies and partners, to not allow cybercrime facilitators to operate with impunity,” State Department spokesman Matthew Miller said in a statement.

“We will continue to use all our tools and authorities to deter and expose these money laundering networks and impose costs on the cyber criminals and support networks,” he added. “We reiterate our call that Russia must take concrete steps to prevent cyber criminals from freely operating in its jurisdiction.”

Cryptex is registered in St. Vincent and the Grenadines but operates in Russia, according to the Biden administration. The U.S. government alleges Ivanov worked with several other Russian payment and exchange services providing money transfer and laundering services.

The Treasury Department in its action Thursday also identified a Russian virtual currency exchanger tied to Ivanov as being of “primary money laundering concern.”

Brad Smith, acting under secretary of the Treasury for Terrorism and Financial Intelligence, said the action shows the U.S. is focused on preventing cybercrime facilitators from “operating with impunity.”

“Treasury, in close coordination with our allies and partners, will continue to use all tools and authorities to disrupt the networks that seek to leverage the virtual assets ecosystem to facilitate their illicit activities,” he said in a statement.

U.S. officials have been working to undermine Russian efforts to bolster their influence internationally after Moscow’s 2022 invasion of Ukraine.

The announcement came the same day President Biden was scheduled to meet with Ukrainian President Volodymyr Zelensky to announce additional U.S. financial assistance for Ukraine’s war efforts.

“The United States will continue to raise the costs on Russia for its war in Ukraine and to deprive the Russian defense industrial base of resources,” Biden said ahead of their meeting.

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