Two Russians Charged in $1B Money Laundering Scheme, Websites Seized

The Justice Department has charged two Russian nationals in connection with a billion-dollar money laundering operationPhoto byTraxeronUnsplash

The U.S. Department of Justice (DOJ) announced today the indictment of two Russian nationals for running a billion-dollar money laundering operation that catered to cybercriminals.

The action, coordinated with the Department of State, Treasury, and international law enforcement, also included the seizure of websites connected to three illegal cryptocurrency exchanges.

The government's seizure of these domains will block the owners and others from using the websites for money laundering. Visitors to the sites will now see a notice stating that they have been seized by federal authorities, according to the DOJ.

The defendants, Sergey Ivanov and Timur Shakhmametov, are accused of laundering money for cybercriminals involved in ransomware attacks, darknet drug markets, and stolen credit card information, the DOJ says.

Ivanov, also known online as "Taleon," allegedly provided payment processing services to websites selling stolen credit card data, including Rescator and Joker's Stash.

Shakhmametov, also known as "JokerStash," operated Joker's Stash, a website that sold data from millions of stolen credit cards, according to DOJ officials.

“These two individuals allegedly pocketed millions from their illegal activities and helped build a network of cybercriminals worldwide,” said Deputy Attorney General Lisa Monaco.

“We worked with our international partners to shut down Cryptex, an illegal cryptocurrency exchange, and recovered millions in cryptocurrency.”

The Justice Department revealed that Ivanov's laundering operations processed over $1.15 billion in cryptocurrency transactions, with about 32% of that amount linked to criminal activity, including ransomware payments and fraud.

Shakhmametov's website, Joker's Stash, offered stolen data from approximately 40 million credit cards annually, generating profits estimated between $280 million and $1 billion.

U.S. Attorney Jessica Aber emphasized the persistence of law enforcement in tracking cybercriminals, stating, "We will follow their money trail and ensure justice is served."