$2.5 Billion Russian Crypto Laundering Ring Smashed

By Mark Hunter

2 months agoFri Sep 27 2024 10:21:06

Reading Time: 2 minutes

• The U.S. government has seized several crypto domains linked to over $2.55 billion in illicit transactions
• Two Russian nationals have been charged with operating illegal exchanges that facilitated large-scale money laundering
• The exchanges, including Cryptex and PM2BTC, processed a significant portion of their transactions tied to criminal activities

The U.S. Department of Justice (DOJ) has charged two Russian nationals , Sergey Medvedev and Timur Shakhmametov, in connection with a large-scale cryptocurrency money laundering operation. According to the DOJ, the platforms, Cryptex and PM2BTC, processed more than $2.55 billion in cryptocurrency transactions, a significant portion of which was tied to illegal activities. These operations form part of a growing cybercrime ecosystem, where cryptocurrencies are used to launder funds from illicit activities, including selling stolen payment card information and processing ransomware payouts.

Pair “Pocketed Millions of Dollars” Through Their Activities

Shakhmametov and Medvedev’s are accused of using Cryptex and PM2BTC to launder funds for major dark web platforms like Joker’s Stash and Rescator, which are notorious for selling stolen payment card details. The platforms allowed cybercriminals to exchange ill-gotten gains for digital currencies that could then be cashed out or moved through additional layers of cryptocurrency transactions to further disguise the funds’ origins.

According to Deputy Attorney General Lisa Monaco, the Russians “pocketed millions of dollars from prolific money laundering and fueled a network of cyber criminals around the world,” with Ivanov “facilitating darknet drug traffickers and ransomware operators.”

Assistant Attorney General Kenneth A. Polite, Jr added, “These platforms were specifically created to launder proceeds from a wide variety of criminal enterprises,” and noted that, according to the Justice Department, about 31% of the transactions processed through Cryptex were directly linked to criminal activity, including fraud and extortion.

International Operation Ends With Shutdowns

The DOJ revealed how U.S. authorities coordinated with international law enforcement agencies to dismantle the infrastructure supporting the criminal network. In addition to seizing the domains, authorities have begun efforts to recover millions of dollars in illicit funds. 

Medvedev, who operated Cryptex, is accused of processing over $1.5 billion in illicit proceeds. Shakhmametov has been charged with running Joker’s Stash, a notorious dark web platform that sold millions of stolen payment card details. He is facing charges of money laundering and conspiracy, as his platform facilitated illegal transactions involving stolen card data and proceeds from other criminal activities.