The US Treasury Department today declared sanctions against Chatex
cryptocurrency exchange for assisting ransomware groups escape sanctions and
helping them in carrying out ransomware transactions. The US department also
sanctioned Suex crypto exchange (based in Russia) in September for assisting a
minimum of 8 ransomware teams, with more than 40% of public transactions linked to threat actors.
"Ransomware incidents have disrupted critical services
and businesses globally, as well as schools, government offices, hospitals, and
emergency services, transportation, energy, and food companies. Reported
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," said US
Treasury. The investigation of public transactions hints that more than 50% of transactions are tracked down to malicious or illegal activities like darknet
market, ransomware, and high-risk exchanges, says US Treasury Department.
As of
now, Chatex is designated as pursuant to Executive Order (E.O) 13694, amending
for material support assistance to Suex and malicious harm posed by ransomware
hackers. When the crypto exchanges are sanctioned for providing material support
to ransomware groups, the United States is hoping to extract out fundings and
shut down the campaign. According to the US Treasury of the department, unprincipled
virtual currency exchanges like Chatex are critical to the profitability of
ransomware activities, especially by laundering and cashing out the proceeds for
criminals.
The treasury is constantly using all available resources to restrict
harmful threat actors, disrupt illegal criminal proceedings, and stop extra
activities against US citizens. According to Bleeping Computers, "FinCEN's
Financial Trend Analysis report was issued on the heels of governments worldwide
saying they will crackdown on cryptocurrency payment channels used by
ransomware gangs. One year ago, the Treasury Department's Office of Foreign
Assets Control (OFAC) also warned that ransomware negotiators that they could
face civil penalties for facilitating ransom payments if their deals involve
ransomware gangs already on its sanctions list."
