US officials seize $ 6.1 million crypto from ransomware agents and add Chatex to d. added

The US Treasury Department has announced that it will impose sanctions on the Chatex crypto exchange and its support network for allegedly facilitating transactions for ransomware actors.

In an advisory update published on November 8th, the Treasury Department’s Office of Foreign Assets Control (OFAC) added Chatex, IZIBITS OU, Chatextech SIA and Hightrade Finance to its list of government-sanctioned institutions. The ministry claims Chatex has a “direct relationship” with the Czech and Russian company Suex OTC, which it approved in September.

According to OFAC, Chatex has helped make transactions easier for ransomware groups, with more than half of the exchange’s transactions “coming from illegal or high-risk activities such as the marketplace, darknet, high-risk exchanges and ransomware”. The exchange will be included in the sanctions list after the Latvian and Estonian authorities have ceased operations of Chatextech and revoked the IZIBITS OU’s license.

“Undisciplined virtual currency exchanges like Chatex are critical to the profitability of ransomware operations, particularly through laundering and transferring funds to criminals,” the ministry said. “The Treasury Department will continue to use all available agencies to stop malicious actors online, prevent illegal criminal funds, and prevent additional action against the American people.”

In the same press release, OFAC accused Ukrainian citizen Yaroslav Vasinskyi and Russian citizen Yevgeniy Polyanin of participating in ransomware attacks against various US government organizations and numerous private sector organizations. As part of the actions of the Treasury Department, individuals in the United States are prohibited from transacting any transactions with Vasinskyi, Polyanin, Chatex, and any affiliates, or they may face real action, enforcement, or sanctions.

The State Department announced it would reward $ 10 million for information that leads to someone holding a “critical leadership position” in the Sodinokibi / REvil ransomware group. In addition, a $ 5 million reward is offered which will result in the arrest or conviction of anyone attempting to carry out a major ransomware attack.

Related: Bitcoin Ledger as a secret weapon in the war against ransomware

During a press conference today, US Attorney General Merrick Garland said the Justice Department charged Vasinsky in August with allegedly playing a role in PC hacking and plotting to launder money by soliciting payments. According to the Justice Minister, Vasinsky was arrested by the Polish authorities in October and is awaiting extradition to the United States. In addition, the Justice Department announced a similar indictment against Polyanin, which seized $ 6.1 million in cryptocurrencies from 3,000 ransomware attacks for which it was allegedly responsible.

“For the second time in five months we announced the seizure of ransomware proceeds donated by a transnational criminal group,” said Garland. “This won’t be the last time – the US government will continue to aggressively pursue the entire ransomware ecosystem and increase our nation’s resilience to cyber threats.”

Under President Joe Biden, fighting ransomware attacks on critical US infrastructure was a big deal. In June, a government task force confiscated more than $ 2 million in cryptocurrency used to pay ransom money after an attack on the Colonial Pipeline system.

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