On September 27, 2024, the U.S. government took decisive action against cybercrime by imposing sanctions on two cryptocurrency exchanges, Cryptex and PM2BTC, for allegedly facilitating money laundering and supporting illicit activities. This coordinated effort was part of Operation Endgame, a law enforcement initiative that aims to dismantle networks involved in cybercriminal operations. The move comes alongside an indictment against Sergey Sergeevich Ivanov, a Russian national accused of running various money laundering services used by cybercriminals.
Both Cryptex and PM2BTC are accused of laundering cryptocurrencies obtained through criminal activities, including ransomware attacks. Cryptex reportedly generated over $51.2 million in proceeds from illicit transactions and claimed to offer “complete anonymity” for its users. PM2BTC has been identified as facilitating a substantial number of transactions linked to Russian illicit finance, with allegations of failing to implement necessary anti-money laundering (AML) and Know Your Customer (KYC) measures as mandated by U.S. law. Together, these exchanges have been tied to an estimated $7.5 billion in transactions since their inception.
In response to the sanctions, the websites associated with Cryptex and PM2BTC have been seized and replaced with law enforcement notices. Additionally, authorities confiscated approximately €7 million (around $7.8 million) in cryptocurrency. U.S. officials emphasized the importance of international cooperation in combating cybercrime, with the Treasury Department vowing to use all available tools to disrupt networks that exploit virtual assets for illicit purposes.
The actions against these exchanges reflect a growing recognition of the role that cryptocurrencies play in facilitating cybercrime. As the U.S. government and its international partners continue to target the infrastructure supporting these criminal activities, they aim to create a safer online environment. The Department of State has also announced rewards for information leading to the arrests and convictions of key figures linked to these illicit operations, further underscoring the commitment to tackling cybercrime and financial fraud in the digital age.
