U.S. State Department offers $10 million reward for arrest of two Russian crypto criminals suspected of money laundering

U.S. authorities have charged Russian nationals Sergey Sergeevich Ivanov and Timur Shakhmametov for allegedly running a cryptocurrency money laundering service linked to Russian cybercrime. The U.S. Department of State has announced a $10 million reward for information leading to their arrest or conviction.

The U.S. Treasury, in collaboration with international partners, has targeted PM2BTC and Cryptex, two digital currency exchanges implicated in extensive money laundering operations that benefit ransomware groups and other cybercriminals in Russia.

Russian crypto crime launders huge amounts of money

The Financial Crimes Enforcement Network (FinCEN) has labelled PM2BTC, associated with Ivanov, as a "primary money laundering concern." Additionally, the Office of Foreign Assets Control (OFAC) has sanctioned both Ivanov and Cryptex for facilitating over $51 million in ransomware-related transactions and links to $720 million in Russian cybercrime.

Ivanov, reportedly involved in cybercrime for more than 20 years, is accused of laundering hundreds of millions through various payment processing services. Cryptex has also been linked to laundering activities for cybercriminals, including ransomware actors.

Law enforcement agencies, including the U.S. Secret Service and Dutch authorities, have seized domains and infrastructure related to PM2BTC and Cryptex, while an indictment against Ivanov and Shakhmametov has been unsealed.

Related reading:US Justice Department Targets Russian Crypto Laundering Networks in Major Crackdown

National Security and Sanctions

The measures are part of Operation Endgame, a multinational initiative designed to dismantle financial networks supporting cybercriminals. OFAC's sanctions block all assets of the suspects within the U.S. and prohibit U.S. entities from engaging with them.

FinCEN's order restricts financial institutions from transacting with PM2BTC, posing risks for foreign entities involved as well.

Bradley T. Smith, acting Undersecretary of the Treasury for Terrorism and Financial Intelligence, reaffirmed the commitment to preventing cybercrime facilitators from operating unchecked.

This legal action forms part of a broader U.S. strategy against Russia-based cybercrime, with several individuals and groups sanctioned in the past year, including members of the hacktivist group Cyber Army of Russia Reborn and leaders of the LockBit ransomware group.