On Thursday, the US imposed sanctions on three illicit cryptocurrency exchanges and claimed Russian money laundering activities that catered to cybercriminals.
TakeAway Points:
- The United States on Thursday imposed sanctions on alleged Russian money laundering operations that catered to cybercriminals and involved three illegal cryptocurrency exchanges.
- Sergey Sergeevich Ivanov, a Russian national, is accused by the Justice Department of conspiring to commit bank fraud and money laundering by utilising credit and debit card information that has been stolen.
- The US Department of Justice is looking into Super Micro Computer, over a month after short seller Hindenburg Research claimed to have discovered “accounting manipulation” at the manufacturer of AI servers.
US sanctions cyber and Russia
The Justice Department unsealed an indictment charging Russian national Sergey Sergeevich Ivanov with conspiracy to commit bank fraud and money laundering using stolen credit and debit card information.
Ivanov’s services have been used by cybercrime marketplaces, ransomware groups, and hackers responsible for significant data breaches of major U.S. companies, the department said.
Russian national Timur Shakhmametov faced similar charges in the indictment, the department said.
In a coordinated action, the Treasury Department imposed sanctions on Ivanov and Cryptex, a virtual currency exchange based in Saint Vincent and the Grenadines but operating in Russia.
The United States and its allies have imposed sanctions on thousands of Russian targets since Russia invaded neighboring Ukraine on Feb. 24, 2022. The war has seen tens of thousands killed and cities destroyed.
Treasury’s Financial Crimes Enforcement Network also identified Russian crypto exchange PM2BTC, which is associated with Ivanov, as a “primary money laundering concern” in connection with Russian illicit finance.
The Treasury financial crime bureau found that PM2BTC used “an unusual obfuscation” that made it harder to trace illicit transactions, it said.
PM2BTC has longstanding ties to Russian or Russian-affiliated financial institutions that are under U.S. sanctions or other restrictions, according to Treasury.
“The United States and our international partners remain resolute in our commitment to prevent cybercrime facilitators like PM2BTC and Cryptex from operating with impunity,” said Bradley Smith, acting undersecretary for Treasury’s terrorism and financial intelligence unit.
At the same time, the State Department announced rewards of up to $10 million each for information leading to the arrest or conviction of Ivanov or Shakhmametov.
The State Department is also offering rewards of up to $1 million each for information identifying the leaders of PM2BTC and stolen credit card marketplaces PinPays and Joker’s Stash.
US Justice Department probes Super Micro Computer
The U.S. Department of Justice is investigating Super Micro Computer, the Wall Street Journal reported on Thursday, nearly a month after short-seller Hindenburg Research alleged “accounting manipulation” at the AI server maker.
Super Micro’s shares fell about 12% following the report.
The WSJ report, which cited people familiar with the matter, said the probe was at an early stage and that a prosecutor at a U.S. attorney’s office recently contacted people who may be holding relevant information.
The prosecutor has asked for information that appeared to be connected to a former employee who accused the company of accounting violations, the report added.
Hindenburg allegations against Super Micro
Super Micro had late last month delayed filing its annual report, citing a need to assess “its internal controls over financial reporting,” a day after Hindenburg disclosed a short position and made claims of “accounting manipulation”.
The shortseller had cited a three-month investigation that included interviews with former senior employees of Super Micro and litigation records.
Hindenburg’s allegations included evidence of undisclosed related-party transactions and failure to abide by export controls, among other issues. The company had denied Hindenburg’s claims.
Super Micro on Thursday declined to comment on the report, while the DOJ said it cannot confirm or deny the existence of such a probe.
A review of tender documents earlier this year showed Chinese entities acquired high-end Nvidia chips embedded in server products made by several companies, including Super Micro, through resellers.
The U.S. government has been cracking down on the sale of such technology to China.
Super Micro has been a big winner in the generative AI boom, as businesses bet on the technology needed to power applications such as ChatGPT, sending its market value to $67 billion in March from roughly $4.4 billion.
The rally in AI stocks has since cooled, as investors realized the payoff on companies’ heavy investments would be slower than expected.
