The US Treasury blacklisted a Russian cryptocurrency exchange due to the facilitation of illicit transactions aimed at ransomware hackers
The United States of America government managed a sanction on a cryptocurrency exchange based in Russia. The reason is the link of transactions to ransomware attackers. The move is part of an effort by authorities to combat growing ransomware attacks.
The US Department of the Treasury included Russian cryptocurrency exchange Suex.io to its list of Specially Designated Nationals (SDNs) for allegedly making transactions easier for ransomware attackers. The transactions could surpass $ 160 million.
The designation placed Suex in a category with suspected terrorists and drug traffickers. This sanction means that US citizens and companies can not do business with the said platform.
Otherwise, these American companies or citizens could face a fine or even go to jail. In addition, the move makes Suex the first crypto exchange designated as such by a US federal agency.
Russian Exchange is on the US blacklist
The Treasury Office of Foreign Assets Control (OFAC) alleged in a statement that the exchange helped transact funds that got acquired through illicit means, including transactions linked to about eight ransomware variants.
The analysis from the agency suggests that more than 40% of known transactions had a connection in various ways to such malicious acts.
Undersecretary of the Treasury, Adewale Adeyemo, in a press call quoted by CoinDesk said that exchanges like Suex are critical to attackers’ ability to profit from ransomware attacks. The action against the exchange represents the US authorities’ intentions to disrupt the illicit infrastructure used in said attacks.
The measure comes amid a push by President Joe Biden’s administration to combat ransomware. The efforts follow a series of high-profile attacks on US companies, including interstate gas provider Colonial Pipeline and meat processor JBS.
Ransomware is a malicious software-based attack that obstructs the gateways to data and computer networks until the victim pays a ransom. Hackers often request payments in digital currencies because these can be more difficult to track than other payment methods.
Suex Made Crypto Operations Easy for Hackers
According to Chainalysis, at least $ 13 million in bitcoin transactions sent through Suex got directly linked to ransomware attacks. The scammers sent another $ 24 million in bitcoin, while another $ 20 million remained tied to Hydra and other darknet markets.
Overall, the Russian exchange has acquired more than $ 480 million in cryptocurrency transactions since February 2018, according to Chainalysis. Of that figure, at least $ 160 million goes to illicit activities. These funds are usually in BTC, Ethereum, and Tether, the analytics firm revealed.
According to the investigation, Suex has its legal registration in the Czech Republic. However, it does not count on physical presence there. It operates in Moscow and St. Petersburg; it also works in Russia and the Middle East.
Suex also acquired more than $ 50 million in Bitcoin from addresses hosted by the previous cryptocurrency exchange BTC-e, which US officials closed due to alleged money laundering activity.
By: Jenson Nuñez
