US officials seize $6.1M in crypto from ransomware actors

“This won’t be the last time — the U.S. government will proceed to aggressively pursue the whole ransomware ecosystem and increase our country’s resilience to digital threats,” said Attorney General Merrick Garland.

US officials seize $6.1M in crypto from ransomware actors
  • The United States Department of the Treasury has declared it will impose sanctions on the cryptocurrency trade Chatex and its support network for purportedly working with transactions for ransomware actors.
  • In an advisory update issued on Nov. 8, the Treasury Department Office of Foreign Assets Control, or OFAC, added Chatex as well as IZIBITS OU, Chatextech SIA, and Hightrade Finance to its list of entities sanctioned by the U.S. government. The office asserted Chatex has “direct ties” with Czech Republic and Russia-based business Suex OTC, which it sanctioned in September.
  • As per OFAC, Chatex has worked with transactions for ransomware groups, with the greater part of the trade’s transactions “followed to unlawful or high-risk activities such as darknet markets, high-risk exchanges, and ransomware.” The expansion of the trade to the sanctions list follows Latvian and Estonian authorities suspending Chatextech’s operations and denying IZIBITS OU’s license, respectively.

“Deceitful virtual money exchanges like Chatex are basic to the benefit of ransomware activities, especially by laundering and cashing out the proceeds for criminals,” said the division. “Treasury will keep on using all accessible authorities to disrupt malicious digital actors, block badly gotten criminal proceeds, and prevent extra actions against the American public.”

  • In the same declaration, OFAC affirmed Ukrainian public Yaroslav Vasinskyi and Russian public Yevgeniy Polyanin had been essential for ransomware attacks against numerous U.S. government entities as well as numerous in the private sector. As a component of the Treasury Department’s actions, U.S. residents are restricted from taking part in transactions with Vasinskyi, Polyanin, Chatex, and all associated entities, or they might confront authorization activity or sanctions themselves.
  • The State Department declared it would offer a $10 million award for data prompting the area of anybody in a “key leadership position” in the Sodinokibi/REvil ransomware bunch. What’s more, it would offer a $5 million prize prompting the arrest or conviction of anybody endeavoring to start a significant ransomware assault.
  • During a press meeting today, U.S. Principal legal officer Merrick Garland said the Justice Department had prosecuted Vasinsky in August for his supposed job in hacking personal computers as well as conspiring to submit money laundering by requesting payment for the ransomware attacks. As per the Attorney General, Polish authorities arrested Vasinsky in October and he is anticipating removal to the United States. Also, the Justice Department reported a similar prosecution against Polyanin, having seized $6.1 million in crypto from 3,000 ransomware attacks for which he was purportedly responsible.

“For the second time in five months, we reported the seizure of computerized proceeds of ransomware sent by a transnational criminal gathering,” said Garland. “This won’t be the last time — the U.S. government will proceed to aggressively pursue the whole ransomware ecosystem and increase our country’s resilience to digital threats.”

  • Under President Joe Biden, battling ransomware attacks to basic U.S. infrastructure has been a significant issue. In June, an administration task power seized more than $2 million in crypto used to pay for ransom following an assault on the Colonial Pipeline system.