Moscow probes Cryptex, UAPS just days after US sanctions

crypto.news · 2024-10-02T06:21:42+00:00

Russian authorities have launched a criminal investigation into the founders of the anonymous payment service UAPS and cryptocurrency exchange Cryptex, who are accused of generating around $40m in illicit income, including operating unlicensed payment infrastructure. The case was launched just days after Cryptex and its founder were designated facilitators of illicit financial activities by the US Office of Foreign Assets Control.

crypto.news

2024-10-02 06:21:42

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Russia has launched a criminal case against the founders of the anonymous payment UAPS and Cryptex just days after OFAC imposed sanctions.

Russian authorities have opened a criminal probe into the founders of the anonymous payment UAPS and the cryptocurrency exchange Cryptex, alleging that the group generated over 3.7 billion rubles (around $40 million) in illicit income.

According to an Oct. 2 report from Russia’s state-run TASS news agency, the probe, led by Moscow’s Investigative Committee, centers on claims of illegal banking activities, unauthorized access to protected information, and operating an unlicensed payment infrastructure.

UAPS, founded in 2013, and Cryptex, launched in 2018, were designed to support 33 online services primarily used by cybercriminals, including currency exchanges, cash withdrawals, and the sale of bank cards. These platforms enabled hackers and other actors to launder money, with more than 112 billion rubles (around $1.2 billion) flowing through the network in 2023 alone.

Russia targets crypto exchange network in major crackdown

Russian law enforcement agencies have carried out 148 searches across 14 regions, detaining 96 suspects. Many face charges related to organized crime and illegal banking activities.

The probe follows OFAC’s Sept. 26 designation of Cryptex and its founder, Sergey Ivanov, as key facilitators of illicit financial activities. According to OFAC, Cryptex and UAPS were involved in laundering funds for ransomware payments, darknet markets, and fraud shops.

The U.S. Treasury’s Financial Crimes Enforcement Network also identified Ivanov’s other exchange, PM2BTC, as a primary money laundering concern under the Combating Russian Money Laundering Act, marking one of the most significant actions against cryptocurrency exchanges.

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