Russian authorities have detained over 90 people in a money laundering case that allegedly finds its ties to crypto exchange Cryptex. According to official statements and local media reports, the developers of the cryptocurrency exchange Cryptex and the Universal Anonymous Payment System (UAPS) are the subject of a criminal investigation by Russian law enforcement.
According to the Investigative Committee, 96 persons have been detained and 148 searches have been conducted by authorities in 14 different areas of Russia.
The basis of the criminal proceeding comes from the fact that Cryptex offers its users anonymity by enabling them to register without disclosing personal information required to comply with know-your-customer regulations.
On the other hand, UAPS and other anonymous payment systems are thought to offer money transfer and laundering services directly to cybercriminals.
The accused were allegedly forming and engaging in a criminal organization, gaining unauthorized access to computer data, disseminating a payment method unlawfully, and engaging in illicit financial operations.
According to the inquiry, the group’s services brought in 112 billion rubles ($1.18 billion) in 2023, of which the accused received 3.7 billion rubles ($38.9 million) illegally.
US Sanctions Cryptex Amid Ongoing War
Russia’s move to bring in the criminal proceedings follows suit with global nations, especially The United States of America which had sanctioned the crypto exchange just last week.
The virtual currency exchange Cryptex, which is based in St. Vincent and the Grenadines and operates in Russia, was sanctioned by the US Office of Foreign Assets Control (OFAC), making global headlines.
Additionally, Web domains and/or infrastructure connected to PM2BTC, UAPS, and Cryptex have been taken over by the U.S. Secret Service’s Cyber Investigative Section, the Netherlands Police, and the Dutch Fiscal Intelligence and Investigation Service (FIOD).
The sanctions come as thousands of Russian targets have been subject to the wrath of the States and its allies since Russia invaded neighboring Ukraine on February 24, 2022.
Most nations have accused the illegal involvement of crypto in the Russia-Ukraine war, with many speculating that digital currencies were used to buy illegal weapons during the turmoil.
Today’s move seems an attempt from Russia to better regulate the crypto sector in the nation, as mounting global pressure has resulted in increasing difficulties in foreign payments.