US sanctions crypto exchange for alleged ransomware role
By Robert Davis
16:00, 22 September 2021
The US Treasury Department’s Office of Foreign Asset Control announced sanctions against Russian-backed cryptocurrency exchange Suex OTC for its alleged role in financing ransomware attacks around the globe.
The exchange is accused of facilitating illicit proceeds from at least eight attacks, according to a press release. Treasury also estimates that 40% of transactions on Suex are made by illicit actors.
“Ransomware and cyber-attacks are victimising businesses large and small across America and are a direct threat to our economy. We will continue to crack down on malicious actors,” Treasury secretary Janet Yellen said in a statement.
“As cyber criminals use increasingly sophisticated methods and technology, we are committed to using the full range of measures, to include sanctions and regulatory tools, to disrupt, deter, and prevent ransomware attacks,” she said.
Capital.com was unable to reach Suex for comment.
Crypto crime
According to the Treasury, exchanges like Suex are critical to the profitability of ransomware attacks. Not only do they help illicit actors transfer funds, but they also help conceal the identity of cybercriminals and their accomplices.
While most transactions and exchanges are licit in nature, the Treasury claims that others, such as Suex, exist solely for the illicit gains of criminals.
According to a report by Chainalysis, a cryptocurrency research organisation, the number of reported cybercriminal activies on cryptocurrency exchanges dropped considerably between 2019 and 2020. These activities represented just 0.34% of all transactions in 2020, the report said.
However, regulators and law enforcement authorities have made their biggest impact on cyber scams while the number of ransomware attacks has grown steadily since 2017, the report added.
Ransomware accounted for 7% of all funds received by criminals in 2020, accounting for more than $350m (£256.18m) in cryptocurrency. This represents a 311% increase in stolen assets since 2019, Chainalysis found.
Sanctions implication
As a result of the sanctions, the Treasury blocked the assets of its designated targets. Additionally, those who own at least a 50% stake in Suex are also blocked. These provisions also apply to financial institutions that support Suex.
SUEX is the first cryptocurrency exchange on the Treasury's sanctioned list, which also contains 14 bitcoin addresses and four ethereum addresses.
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