In a major operation targeting illegal cryptocurrency exchanges, Russian authorities have raided numerous locations across St. Petersburg and other regions, intensifying their efforts against illicit crypto activity. According to Russian news outlets 47news and 78.ru, law enforcement officials conducted raids in 14 different areas, leading to the arrest or interrogation of over 90 individuals. The Ministry of Internal Affairs' Department of Economic Security played a key role in the operation, which appears to be part of a larger crackdown on suspected money laundering networks.
The exchanges targeted are believed to be part of a broader system, potentially linked to illegal cross-border money transfers. The sheer scale of the operation suggests a high level of coordination, involving hundreds of officials from the Ministry of Internal Affairs in Moscow, local police, and criminal investigators. Raids began early in the morning, with officers dividing into groups and receiving sealed search warrants before targeting multiple addresses at once.
Cryptocurrency Exchanges’ Legal Status in Russia
Cryptocurrency exchanges currently lack a clear legal status in Russia, but authorities suspect that many of these businesses facilitate money smuggling out of the country. Russian officials believe that these platforms use cryptocurrencies to enable illegal cross-border financial transactions. Those responsible for the exchanges now face charges related to organized crime, illegal banking activities, and unlawful circulation of payment instruments.
One key target of the investigation is a residential property in the village of Lisiy Nos, near St. Petersburg, believed to be the home of the mastermind behind a crypto-for-cash operation. Similar raids have also taken place, including a late September operation in Moscow where authorities raided a travel agency suspected of operating as a front for a $2.2 million illegal cryptocurrency exchange network.
U.S. Seizes Crypto Exchanges Linked to Russia
Meanwhile, in the U.S., the Department of Justice (DOJ) has escalated its own efforts against Russian-linked cybercrime by seizing three cryptocurrency exchanges: UAPS, PM2BTC, and Cryptex. These platforms reportedly facilitated over $800 million in illegal transactions, largely linked to money laundering operations originating from Russia.
U.S. authorities have obtained court approval to seize the domains of these exchanges, blocking access and replacing the websites with government notices explaining the confiscation due to illegal activity. The DOJ's actions follow charges against two Russian nationals in connection with an international money laundering scheme.
Unmasking Major Criminal Figures
Among those charged is Sergey Ivanov, also known as “Taleon,” who is accused of operating numerous money-laundering services for criminal enterprises, including ransomware gangs and darknet drug traffickers. Ivanov allegedly managed cryptocurrency payment and exchange services from Russia, processing around $1.15 billion in digital asset transactions between 2013 and 2024. His operations included the exchanges UAPS, PinPays, and PM2BTC.
Another implicated exchange, Cryptex, processed a staggering $1.4 billion in transactions, with 31% of its volume directly tied to criminal activities. This platform, along with the others, was promoted on cybercriminal forums and offered users anonymity by bypassing Know-Your-Customer (KYC) compliance requirements.
In addition to Ivanov, Timur Shakhmametov, another Russian national, has been indicted for managing Joker’s Stash, a notorious carding website that sold stolen credit and debit card information. Both Ivanov and Shakhmametov advertised their services on dark web forums frequented by cybercriminals.
Deep Ties to Criminal Activity
Blockchain analysis revealed that about 32% of all Bitcoin transactions handled by these exchanges were linked to criminal activity. This included over $158 million tied to fraud, $8.8 million from ransomware payments, and $4.7 million from darknet drug markets. The platforms played a significant role in laundering funds for global cybercriminal networks.
U.S. Government Sanctions and Rewards
In response to these revelations, the U.S. government has imposed sanctions on both Ivanov and the Cryptex exchange. Additionally, the U.S. Department of State has announced a $11 million reward for information leading to the capture of individuals involved in Ivanov's operations or Joker’s Stash.
The combined efforts of U.S. and Russian authorities mark a significant escalation in the global fight against illicit cryptocurrency use and cybercrime. As law enforcement agencies increase their scrutiny of crypto exchanges, the future of these platforms—particularly those facilitating illegal activities—remains uncertain.