US Treasury Sanctions 2 Russians Over $16.8M Virtual Currency Heist

2020-9-18 21:20

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned two Russian nationals over the theft of millions of dollars in digital currency.

The perpetrators allegedly carried out cyber attacks on three or more cryptocurrency platforms in 2017 and 2018. In a September 16 press release, OFAC said the men stole a total of $16.8 million from American citizens and businesses.

A Warning

The statement highlighted OFACs commitment to redoubling its efforts to target cyber-crime. The office specifically suggested that blockchain technology was under scrutiny. U.S. Treasury Secretary Steve Mnuchin gave a dire warning to cybercriminals:

The Treasury Department will continue to use our authorities to target cybercriminals and remains committed to the safe and secure use of emerging technologies in the financial sector.

The press release identified the two men as Russian nationals, Danil Potekhin (aka ‘cronuswar’), and Dmitrii Karasavidi. The accused thieves were also subject to a Department of Justice (DOJ) indictment, which was unsealed yesterday.

The DOJ indictments claim the two hackers mimicked the sites of major crypto exchanges like Gemini, Poloniex, Bittrex, and more.

DANIL POTEKHIN aka “cronuswar,"
DMITRII KARASAVIDI a/k/a Dmitriy Karasvidi,
-Poloniex, LLC
-Bithex
-Binance
-Bitfinex
-Gemini Trust Company LLC
Paragraph 19 encapsulates the scheme and the “market manipulation” the fake websites served as a well for unsuspecting victims pic.twitter.com/aeEcajkwJx

— File411 (@File411) September 16, 2020

The Spoofers Attack

According to investigators, Potekhin created numerous websites and domains which appeared to be authentic cryptocurrency exchanges.

Users who unwittingly entered their data were duped in a tactic called ‘spoofing.’ Armed with logins, passwords, and personal info, the criminals were able to access victims’ accounts on real exchange websites.

Getting the money off those exchanges was another matter, however. Recently, BeInCrypto reported that crypto hackers face a bigger task laundering their loot after obtaining it.

First, they had to hide their ill-gotten rewards. Potekhin used various tactics, including moving currency around multiple accounts, setting up exchange accounts using stolen or false identities, changing currencies, and manipulating the market by forcing prices up with large buys, then selling for an immediate profit.

Once the money became hard to track, Karasavidi began the laundering process in earnest. Surprisingly, Karasavidi transferred the funds into an account under his own name. He attempted to hide the source of the funds through intermediary transfers and cross-blockchain swaps.

As innovation advances financial technology, the U.S. is determined to keep the global financial system safe from the use of these technologies for malign purposes. Today, @USTreasury sanctioned 2 individuals for stealing virtual currency from Americans. https://t.co/5miJv262BX

— Steven Mnuchin (@stevenmnuchin1) September 16, 2020

Law enforcement eventually caught up with him and traced the funds to their source. The United States Secret Service then froze Karasavidi’s assets. The men do not live in the U.S.

The Treasury Department Strikes Back

Not famous for strong wording, the Treasury Department appears committed to cracking crypto crimes. A statement read:

Today’s action demonstrates the important role that a robust anti-money laundering and countering the financing of terrorism (AML/CFT) regime plays in deterring cybercrimes.

The Treasury is not the only department looking to pre-empt crypto-powered cybercrime. On September 4, 2020, the US Internal Revenue Service offered a $625,000 bounty to anyone who could track the anonymity of the Lighting Network or Monero.

Russian Project Lakhta member charged with wire fraud conspiracy. Used stolen identities of U.S. persons to open fraudulent accounts and promote political influence operations. @USATerwilliger https://t.co/lWJMIS3hCd

— U.S. Attorney EDVA (@EDVAnews) September 10, 2020

Other U.S. government departments intend to catch similar offenders. On September 10, the OFAC sanctioned Russian national, Artyom Lifshitz. He, too, faced criminal charges from the DOJ.

The post US Treasury Sanctions 2 Russians Over $16.8M Virtual Currency Heist appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Universal Currency (UNIT) íà Currencies.ru

$ 0.0001272 (+27.27%)
Îáúåì 24H $327
Èçìåíåèÿ 24h: 0.39 %, 7d: -0.52 %
Cåãîäíÿ L: $0.0001272 - H: $0.0001272
Êàïèòàëèçàöèÿ $2.028k Rank 2376
Öåíà â ÷àñ íîâîñòè $ 0.0027614 (-95.39%)

currency treasury cyber out carried perpetrators dollars

currency treasury → Ðåçóëüòàòîâ: 29


Mnuchin Has No Problem With Libra Crypto Launch; Agrees With Powell, No Need For A Digital Dollar

Steven Mnuchin, the US Treasury Secretary said that he and Jerome Powell, the Federal Reserve Chairman, think the US doesn’t need to create a digital currency soon. This is what Mnuchin declared on Thursday, at a Washington House Financial Services Committee hearing: “Chair Powell and I have discussed this — we both agree that in […]

2019-12-6 17:59


In A Historic Move, US Declares China As Currency Manipulator Escalating Trade & Currency War

The US Treasury Department on Monday designated China as a currency manipulator in a historic move that hasn’t been exercised since the Clinton administration. “Secretary Mnuchin, under the auspices of President Trump, has today determined that China is a Currency Manipulator,” the Treasury Department said in a release. “As a result of this determination, Secretary […]

2019-8-6 16:10


Ôîòî:

Australia Wants To Limit Cash Payments Not Cryptocurrency

Draft legislation from Australia’s Department of Treasury has proposed limits on cash payments exceeding $10,000. Interestingly, cryptocurrency is not negatively mentioned in the document. Australia Moves to Limit the Size of Cash Payments Australia’s Department of Treasury recently published a new set of preliminary guidelines that govern the size of cash-based currency payments.

2019-7-29 09:21


VanEck official points out Steve Mnuchin’s 180 on US Treasury’s report on fiat currency and frauds

The main argument used by many critics of cryptocurrencies is that digital assets are used for fraudulent and nefarious activities. This was recently cited by Steve Mnuchin, the United States’s Treasury Secretary, who said that Bitcoin and the rest of the cryptocurrency market would be subject to the same level of jurisdiction that fiat money […] The post VanEck official points out Steve Mnuchin’s 180 on US Treasury’s report on fiat currency and frauds appeared first on AMBCrypto.

2019-7-20 22:30


Tezos Blockchain Platform Takes $10 Million from the XTZ Initial Coin Offering Treasury

The blockchain platform and virtual currency Tezos (XTZ) has taken the decision to withdraw close to $10 million dollars from the reserves of its Initial Coin Offering (ICO) treasury. After taking 82,050 ETH during the week, November is the month with the largest sum of money withdrawal from the treasury. According to the company Diar, […]

2018-11-30 20:50


New Zealand PM Used As Pawn In Fake News Site

Jacinda Arden, Prime Minister of New Zealand has had her face used by a fake news site in order to promote articles aimed at Facebook to encourage a crypto startup. A local media source, ‘Stuff’ reported on Friday that multiple sponsored posts have recently been promoted on Facebook by using the likeness of the New Zealand PM with headlines such as New Investment Plan For Kiwis which were targeted at several different age groups around the country.

2018-10-12 16:30


The Trade War Has Evolved Into A Currency War – Despite What The “Experts” Are Saying

I have no doubt that the ongoing trade war’s evolving into the next round of currency wars. . .   Q2 hedge fund letters, conference, scoops etc This is a contrarian opinion – especially because yesterday China said they have “no desire” to devalue the Yuan in attempt to boost exports. And this came after U.S. Treasury Secretary – […]

2018-7-25 16:18