Cryptocurrency worth $6.1 million seized from cybercriminals by the United States Government

Cryptocurrency worth  $6.1 million Seized from cybercriminals by the United States Government

The United States Department of Treasury has announced that sanctions will be inflicted on a particular cryptocurrency exchange called Chatex along with its support network for allowing ransomware criminals to do transactions on their platform.

Attorney General, Merrick Garland of the USA stated in a recent press conference that the Justice Department has indicted Vasinsky for the hacking of personal computers, and for also being involved in a plot to perpetrate money laundering by demanding for ransom payments.

According to Merrick Garland, for the second time in just five months, a transnational cybercriminal group had deployed ransomware. 

“This is not the last time the U.S. government will go after ransomware in its entirety and make our nation more resilient against cyber threats,” Garland said.

CRYPTOCURRENCY THEIVES SANCTIONED:

A November 8 advisory update from Treasury Department included Chatex in the list of exchanges sanctioned by the government of the USA. Also included are Chatextech SIA, Hightrade Finance, and  IZIBITS OU. Chatex is believed to have strong connections to Russian and Czech Republic company Suex OTC, that was sanctioned by the same Department of the Treasury in September.

Chatex has been associated with illicit activities like as ransomware, high-risk exchanges, and darknet markets,  based on reports from the Foreign Assets Control (OFAC) a Department of the Treasury’s Office of The US. A large percentage of the exchange’s transactions are linked with ransomware groups.

Ransomware enterprises are extremely profitable due to unscrupulous exchanges like Chatex, that specializes in the launder and cash-out income for cybercriminals, based on reports from the Department of Homeland Security.

“The Treasury will continue to deter further actions against the American people by using all available tools to disrupt malicious cyber actors, block criminal proceeds, and disrupt malicious cyber actors,” OFAC added.

 Foreign Assets Control (OFAC) claimed in the same report that a Ukrainian national named Yaroslav Vasinskyi, and a Russian national named Yevgeniy Polyanin, were part of the criminals engaged in ransomware offensives against various private companies and U.S. government organizations.

The report said that In October, the Polish officials detained Vasinsky. He is supposed to be extradited to the US.

The US Justice Department further stated that there is an indictment against Polyanin for  3,000 (three thousand) ransomware cyberattacks for which he is believed to be responsible, after seizing $6.1 million in crypto.

Residents of the United States may be subjected to sanctions or enforcement action if they do business with Chatex, Vasinskyi, Polyanin, and all other affiliated companies, due to the result of the US Treasury Department actions.

The US State Department has announced a $10 million reward for anyone with information that will lead to the location of principal owners of the Sodinokibi/REvil ransomware organisation. It would also give a $5 million reward to anybody who will be able to successfully arrest or convict anybody who makes an attempt to originate a large scale ransomware cyberattack.

The United States president has been grappling to fight ransomware cyberattacks on important infrastructure. There was an attack on Colonial Pipeline which resulted in the seizure of more than $2 million in cryptocurrency following a government task force investigation.

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