Moscow probes Cryptex, UAPS just days after US sanctions

Russia filed a criminal case against the founders of the anonymous payment system UAPS and Cryptex, a few days after OFAC imposed sanctions.

Russian authorities have launched a criminal investigation into the founders of anonymous payment system UAPS and cryptocurrency exchange Cryptex, alleging that the group generated more than 3.7 billion rubles (about $40 million) in illicit income.

The investigation, led by the Moscow Investigative Committee, focuses on allegations of illegal banking activities, unauthorized access to protected information and operating unlicensed payment infrastructure, according to an Oct. 2 report by Russia’s state-run TASS news agency.

UAPS, founded in 2013, and Cryptex, launched in 2018; It was designed to support 33 online services used primarily by cybercriminals, including currency exchange, cash withdrawals and debit card sales. These platforms have enabled hackers and other actors to launder money, with more than 112 billion rubles (about $1.2 billion) flowing through the network in 2023 alone.

Russia targets crypto exchange network with massive crackdown

Russian law enforcement forces conducted 148 searches in 14 regions and detained 96 suspects. Many face charges related to organized crime and illegal banking activities.

The investigation comes after OFAC identified Cryptex and its founder Sergey Ivanov on September 26 as primary facilitators of illicit financial activity. According to OFAC, Cryptex and UAPS were involved in laundering funds for ransomware payments, darknet markets, and scam shops.

The U.S. Treasury’s Financial Crimes Enforcement Network also identified Ivanov’s other exchange, PM2BTC, as a primary money laundering concern under the Russian Anti-Money Laundering Act, making it one of the most significant actions against cryptocurrency exchanges.