[BreachExchange] US Treasury Sanctions Crypto Exchange in Anti-Ransomware Crackdown

[Terrell Byrd]

https://www.securityweek.com/us-treasury-sanctions-crypto-exchange-anti-ransomware-crackdown


The U.S. government’s aggressive anti-ransomware crackdown is showing no
signs of slowing down with the Treasury Department announcing sanctions
against a cryptocurrency exchange and new multi-million-dollar rewards for
information on the REvil ransomware group.

On the heels of a law enforcement hack-back operation and a $10 million
bounty in the hunt for the DarkSide data extortion gang, the U.S. Treasury
slapped sanctions against Chatex, a company that describes itself as “a
full-fledged cryptobank” for Telegram.

The Treasury Department also sanctioned three additional companies --
 IZIBITS OU, Chatextech SIA, and Hightrade Finance Ltd. -- for providing
technology and support to Chatex.

“Chatex, which claims to have a presence in multiple countries, has
facilitated transactions for multiple ransomware variants. Analysis of
Chatex’s known transactions indicate that over half are directly traced to
illicit or high-risk activities such as darknet markets, high-risk
exchanges, and ransomware,” the department said in a statement announcing
the sanction.

The U.S. government said Chatex has direct ties with SUEX OTC, S.R.O.
(Suex), using Suex’s function as a nested exchange to conduct transactions.
Suex was sanctioned earlier this year for facilitating financial
transactions for ransomware actors.

Separately, the U.S. State Department announced another $10 million reward
for information on the identity of leaders of the Sodinokibi/REvil gang,
describing the ransomware hackers as an organized crime group.

An additional $5 million bounty is also being offered for information on
“any individual conspiring to participate in or attempting to participate
in a Sodinokibi variant ransomware incident.”

The crackdown comes as ransomware incidents have disrupted critical
services and businesses globally, as well as schools, government offices,
hospitals and emergency services, transportation, energy, and food
companies.

Data extortion ransomware payments in the United States so far have reached
$590 million in the first half of 2021, compared to a total of $416 million
in 2020, the government said. “The perpetrators behind these ransomware
incidents seek to harm the United States and extort the American people and
our allies. Those who provide financial services to, or facilitate money
laundering for, ransomware actors enable this illegal activity,” the
Treasury Department said.
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