US Seizes 3 Russian Crypto Exchanges in $800M Laundering Bust

US Seizes 3 Russian Crypto Exchanges in $800M Laundering Case

In a major crackdown on global money laundering, the US Department of Justice (DOJ) has seized three cryptocurrency exchanges linked to Russian money laundering schemes. The exchanges—UAPS, PM2BTC, and Cryptex—are accused of processing over $800 million in illegal transactions connected to cybercriminal activities such as ransomware attacks and darknet drug sales.

The DOJ’s action involved taking control of the domains for these exchanges, signaling a significant step in the government’s efforts to limit the illegal use of cryptocurrencies. This seizure is part of a broader campaign to combat the role of digital currencies in international crime and shut down avenues for laundering illicit funds.Bitcoin transactions were linked to criminal activities by the exchanges.

Russian Operators Behind Massive Crypto Transactions

According to court filings, Russian nationals Sergey Ivanov, also known as “Taleon,” and Timur Shakhmametov, were key players behind these exchanges. Ivanov operated UAPS, PinPays, and PM2BTC, which allegedly processed over $1.15 billion in transactions from 2013 to 2024. Shakhmametov ran Joker’s Stash, a notorious online marketplace for stolen credit card data.

Blockchain analysis by the DOJ revealed that 32% of Bitcoin transactions on these platforms were tied to criminal activities, including $8.8 million from ransomware payments and $4.7 million linked to darknet drug markets. The lack of proper know-your-customer (KYC) protocols allowed criminals to operate anonymously on these exchanges, making it easy to facilitate money laundering and other illegal activities.

Global Cooperation Shuts Down Criminal Networks

The US government worked closely with international partners, including Dutch authorities, to dismantle Cryptex, recovering millions in illicit funds. Cryptex was particularly notorious for promoting services that bypassed KYC rules, making it a favored platform for cybercriminals.

In a further move to bring justice, the US State Department has offered an $11 million reward for information leading to the arrest of those involved in these schemes. The recent seizures highlight the importance of global cooperation in tackling the growing issue of crypto-enabled crime, as digital currencies increasingly play a role in criminal enterprises.

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