The US Treasury Department's Office of Foreign Assets Control (OFAC) has imposed sanctions on three crypto exchanges used by Russian darknet markets and banks.
The first exchange affected by the sanctions is Bitpapa IC FZC, LLC, a peer-to-peer virtual currency exchange aimed at Russian nationals. According to authorities, it has been used for millions of dollars in transactions by two Russian entities (Hydra Market and Garantex).
The second is Obshchestvo S Ogranichennoy Otvetstvennostyu Tsentr Obrabotki Elektronnykh Platezhey (TOEP), a virtual currency exchange, operating as Netexchange and Netex24, and had been used by Hydra Market Sberbank, Alfa-Bank and Hydra Market.
See also: New GoFetch attack on Apple Silicon chips steals crypto keys
Hydra Market was the world's largest darknet marketplace, based in Russia, and was used for drug sales and money laundering. As of 2020, it had 19,000 registered accounts and served at least 17 million customers worldwide. It also offered stolen databases, fake documents, and hacking-for-hire services. In April 2022, German police seized Hydra Market's servers along with the United States. They also managed to seize 543 bitcoins from its profits (worth about $38.5 million today).
The third crypto exchange affected by USis Crypto Explorer DMCC (AWEX), which operates in Russia and the United Arab Emirates and facilitates conversions between virtual currencies, rubles and UAE dirhams. AWEX also provides cash services in Moscow and Dubai, allowing customers to load funds onto credit cards of Sberbank and Alfa-Bank, two Russian banks.
The US imposed sanctions on the above crypto exchanges for their participation in the financial services sector of the Russian Federation.
See also: TeamCity vulnerability used for ransomware and cryptomining attacks
"Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue to fund its war against Ukraine," said Brian E. Nelson, the Treasury's undersecretary for terrorism and financial intelligence.
“As the Kremlin seeks to leverage entities in the fintech space, the Treasury Department will continue to expose and disrupt companies that help Russian financial institutions reconnect with the global financial system.”.
Following the new sanctions, all assets and interests in the United States associated with designated individuals and entities will be frozen.
Those who deal with entities and individuals subject to sanctions will also be at risk of sanctions.
OFAC and sanctions
OFAC is a division of the U.S. Department of the Treasury responsible for economic and trade sanctions U.S.. These sanctions may be against countries, organizations , or individuals deemed to pose a threat to the country's national security, economy, or politics.
See also: CryptoChameleon phishing kit: Hackers target FCC
🔒 Protect your privacy with Proton VPN
Swiss VPN from the creators of Proton Mail — strict no-logs policy, strong encryption, and built-in NetShield that blocks ads, trackers, & malware.
- ✔ No-logs, based in Switzerland (except 14-Eyes)
- ✔ NetShield: blocks ads, trackers & malicious domains
- ✔ Covers all devices — free version available
The link is an affiliate link — SecNews may receive a commission at no additional cost to you. It does not affect the independence of our article writing.
OFAC is also responsible for monitoring the activities of sanctioned individuals and organizations and taking steps to ensure that they do not have access to the U.S. financial system.
Finally, OFAC offers guidance and training to organizations and individuals on understanding and complying with sanctions.
Source: www.bleepingcomputer.com
