US authorities are targeting alleged crypto crime network

The charges stem from Ivanov’s alleged provision of payment processing and money laundering services to websites trading in credit and debit card information stolen from U.S. financial institutions.

“Cryptocurrency blockchain analysis revealed that between July 12, 2013 and August 10, cryptocurrency addresses associated with Ivanov’s alleged money laundering services conducted transactions totaling approximately $1.15 billion,” the DoJ said in a press release Thursday, adding that approximately a third of the cryptoassets sent to these addresses come from addresses ‘associated with criminal activity’.

In the same indictment, another Russian, Timur Shakhmametov, was charged with conspiracy to commit bank fraud, money laundering and device access fraud.

In addition, the U.S. Secret Service has executed seizure warrants against website domain names associated with a crypto exchange allegedly used for money laundering, Cryptex.net.

The DoJ said blockchain analysis of addresses connected to Cryptex showed it conducted $1.4 billion in transactions – and that about 31% came from addresses linked to criminal activity, including fraud and ransomware.

“The government’s seizure of these domains will prevent their owners and third parties from using the sites for money laundering,” the DoJ reported.

Dutch law enforcement authorities also seized servers hosting the crypto exchanges, along with $7 million worth of cryptocurrency, the report said.

The US State Department offered a $10 million reward for information leading to the arrest and/or conviction of Ivanov and Shakhmametov, and $1 million for help identifying others involved in the operation of the exchanges and related websites.

The U.S. Treasury Department also issued orders labeling crypto exchanges linked to Ivanov as having “primary money laundering concerns” – actions that ban regulated financial institutions from transferring money to them.

“Today’s actions underscore the Department’s continued disruption of malicious cyber actors and their criminal ecosystem,” Deputy U.S. Attorney General Lisa Monaco said in a news release Thursday.

“The two Russian nationals charged today are alleged to have pocketed millions of dollars through prolific money laundering and fueled a network of cybercriminals around the world, with Ivanov allegedly facilitating darknet drug traffickers and ransomware operators . Working with our Dutch partners, we shut down Cryptex, an illegal crypto exchange, and recovered millions of dollars worth of cryptocurrency,” she added.

The allegations have not been proven.