In a sweeping move to combat global money laundering, the US Department of Justice (DOJ) has taken control of three cryptocurrency exchanges tied to Russian money laundering schemes.
The platforms—UAPS, PM2BTC, and Cryptex—allegedly processed over $800 million in illegal transactions linked to cybercriminal activity, including ransomware and darknet drug trafficking.
The DOJ’s action included seizing the domains of these exchanges, signaling a major step in the government’s efforts to curb the illicit use of digital currencies.
This seizure is part of a larger crackdown on the role of cryptocurrencies in international crime, as authorities aim to close off channels for money laundering.
UAPS, PM2BTC, and Cryptex were accused of processing $1.15 billion in crypto transactions on behalf of Russian cybercriminals, with Cryptex alone handling transactions worth $1.4 billion.
A staggering 31% of Cryptex’s activity was connected to illegal operations, such as ransomware attacks and fraud.
The platform’s lack of know-your-customer (KYC) protocols enabled criminals to operate anonymously, further highlighting the need for regulation in the cryptocurrency space.
Russian nationals operated UAPS, PinPays, and PM2BTC
Court filings revealed that Sergey Ivanov, also known as “Taleon,” a Russian national, operated UAPS, PinPays, and PM2BTC, facilitating over $1.15 billion in transactions between 2013 and 2024.
These services were allegedly used by global cybercriminals, including those engaged in ransomware attacks and darknet drug sales.
Additionally, Russian national Timur Shakhmametov was indicted for his role in running Joker’s Stash, a notorious marketplace for stolen credit card data.
Both individuals face serious charges and lengthy prison sentences if convicted.
According to blockchain analysis by the DOJ, 32% of Bitcoin transactions associated with these exchanges were linked to criminal activity.
Over $158 million worth of Bitcoin was tied to fraud, including $8.8 million from ransomware payments and $4.7 million connected to darknet drug markets.
In response, the US Treasury has sanctioned Ivanov and Cryptex, while the State Department has offered an $11 million reward for information leading to the capture of those involved in these laundering operations.
International collaboration shuts down Russian crypto network
The DOJ worked closely with Dutch authorities to dismantle Cryptex, recovering millions of dollars in illicit funds.
The exchange was known for actively courting cybercriminals by promoting its anonymity services and bypassing KYC compliance.
This international effort underscores the need for cross-border cooperation in combating crypto-related crimes.
As part of its intensified efforts, the US State Department has announced an $11 million reward for information leading to the arrest of key players behind these money laundering schemes.
These cases represent some of the largest crypto-linked money laundering operations uncovered, with US authorities determined to bring those responsible to justice.
With the rise of digital currencies in criminal enterprises, the DOJ’s crackdown sends a strong message that global cooperation is crucial in the fight against crypto-enabled crime.
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