Moscow probes Cryptex, UAPS just days after US sanctions

As a seasoned researcher with a penchant for uncovering the intricacies of the digital economy, I find myself both fascinated and alarmed by the recent developments surrounding UAPS, Cryptex, and PM2BTC. The Russian authorities’ crackdown on these platforms is a testament to the growing recognition that cryptocurrencies can no longer be ignored in the fight against financial crimes.


In recent days, authorities in Russia have initiated a criminal investigation targeting the creators of the anonymized payment systems UAPS and Cryptex, coming hot on the heels of OFAC’s imposition of sanctions against them.

Investigative bodies in Russia are currently examining charges against the creators of the untraceable payment system UAPS and digital currency exchange Cryptex, as they are suspected of having made approximately 3.7 billion rubles (equivalent to around $40 million) through illegal activities.

The investigation, spearheaded by Russia’s Investigative Committee as reported in a TASS news agency article from October 2nd, primarily focuses on allegations involving illicit banking practices, unlawful data access, and the operation of an unauthorized payment system without necessary licensing.

Established in 2013 and introduced in 2018 respectively, UAPS and Cryptex were specifically created to bolster around 33 digital services frequently employed by cybercriminals. These services range from digital currency exchanges, cash withdrawals, and the trading of bank cards. By facilitating these transactions, these platforms allowed hackers and other malicious actors to clean their ill-gotten gains. Remarkably, over 112 billion rubles (approximately $1.2 billion) coursed through this network in the year 2023 alone.

Russia targets crypto exchange network in major crackdown

148 searches were conducted by law enforcement agencies in 14 different areas of Russia, resulting in the arrest of 96 individuals under suspicion. A significant number of these individuals are being charged with offenses linked to criminal organizations and illicit financial transactions.

The device adheres to the identification made by OFAC on September 26, labeling Cryptex and its creator, Sergey Ivanov, as significant players in the facilitation of illegal financial transactions. As stated by OFAC, both Cryptex and UAPS are believed to have been engaged in laundering funds for ransomware payments, online black markets, and fraudulent businesses.

The U.S. Treasury’s Financial Crimes Enforcement Network flagged Ivanov’s additional platform, PM2BTC, as a major focus in money laundering investigations under the Anti-Russian Money Laundering Act, representing one of the most substantial actions taken against cryptocurrency exchanges.

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2024-10-02 17:33