US authorities announced that Cryptex and PM2BTC were involved in laundering money received from ransomware developers and other organized crime groups.
FinCEN reported that at least 50% of processed PM2BTC cryptocurrency transactions involved illegal activity. The service was engaged in exchanging digital assets for rubles with the support of “a number of financial institutions” already under US sanctions, without complying with user verification standards, the department noted.
IN FinCEN named the volumes PM2BTC transactions related to:
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darknet marketplaces Hydra ($41,361), Ferum Shop ($3.45 million) and other illegal online markets ($600,000);
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Garantex exchange ($300,000);
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cryptocurrency exchange service Bitzlato (outgoing and incoming transactions totaling over $695,000);
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Trickbot botnet ($4.2 million in transfers).
The US Treasury Department said that Cryptex is registered in Saint Vincent and the Grenadines under the name International Payment Service Provider. Cryptex is engaged in providing financial services to groups of cybercriminals and works in close connection with Russian banking structures, the department announced.
At least $51.2 million related to malware (ransomware) could have passed through the service, and more than $720 million was associated with darknet marketplaces, mixers, and the sanctioned Garantexsaid ministry representatives.
The US State Department has promised to pay a reward of up to $10 million for information about the whereabouts of Russian citizen Sergei Ivanov, considered the administrator of Cryptex and PM2BTC. Ivanov is accused of laundering several hundred million dollars in cryptocurrencies for criminal groups over 20 years, as well as conducting illegal payments through his own payment system UAPS.
Earlier, representatives of the world’s largest cryptocurrency exchange, Binance, said that they still serve some Russian clients, despite the company’s departure from the country last year and international sanctions.
Source: Bits
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