The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on a virtual private network (VPN) provider, its administrator and a Belarusian malware service operator, accusing them of supplying infrastructure and tools that helped ransomware groups carry out attacks against organisations across the United States.
The sanctions target First VPN Service (1VPNS), its administrator Dmytro Rashevskyi, and Belarusian national Yegeniy Vladimirovich Silayev. US officials say the three played key roles in supporting the wider ransomware ecosystem by providing services that allowed threat actors to conceal their identities, evade security tools and sustain cybercriminal operations.
According to the Treasury Department, 1VPNS has been operating since 2014 and openly marketed its services on cybercrime forums frequented by ransomware operators and other malicious actors. The VPN provider reportedly promoted a strict no-logs policy, claiming it did not retain records of users' online activity or identities and would not cooperate with law enforcement requests. Investigators allege these assurances made the service particularly attractive to cybercriminals seeking to obscure their activities.
Authorities also accuse Rashevskyi of using fraudulent identities, including the aliases "Maksim Sorin" and "Roman Chabanenko," to obtain internet infrastructure from service providers that would otherwise have declined to host the operation because of repeated abuse complaints. Officials say the use of false identities enabled the VPN service to continue operating despite growing scrutiny from infrastructure providers.
The sanctions follow a multinational law enforcement operation that dismantled 1VPNS earlier this year. In May, European authorities, working alongside the FBI's Boston Field Office, seized the service's website and infrastructure as part of Operation Saffron, a coordinated investigation led by French and Dutch law enforcement agencies.
The investigation into 1VPNS began in December 2021, when authorities successfully infiltrated the VPN provider's infrastructure. Investigators quietly gathered intelligence, including access to the service's customer database, before ultimately dismantling the operation after several years of surveillance and evidence collection.
During the coordinated enforcement action, authorities seized 33 servers spread across 27 countries, arrested the service's administrator and identified thousands of users allegedly linked to ransomware operations, online fraud and other forms of cybercrime. Europol previously stated that 1VPNS had appeared in nearly every major cybercrime investigation it supported, underscoring the service's alleged role within the broader cybercriminal ecosystem.
US officials said organisations affected by ransomware attacks involving infrastructure provided by 1VPNS included businesses, hospitals, financial institutions and municipal governments. These sectors have increasingly become frequent targets of ransomware campaigns because operational disruption often places significant pressure on victims to pay extortion demands.
In a separate but related action, OFAC also sanctioned Silayev for allegedly developing and selling cryptors, also known as crypters, to cybercriminals. Cryptors are specialised software tools designed to modify malware so that it appears different to security products, making malicious code significantly harder for antivirus software and endpoint detection systems to identify. While cryptors do not carry out attacks themselves, they are widely used to help ransomware and other malware bypass detection during deployment.
The Treasury Department estimates that ransomware operations using services provided by 1VPNS and malware protected by Silayev's cryptors have collectively contributed to billions of dollars in losses suffered by US businesses and operators of critical infrastructure.
In announcing the sanctions, State Department spokesperson Thomas Pigott said the designated individuals supplied ransomware groups with services that concealed their identities, disguised malicious software and helped attackers avoid detection, ultimately enabling campaigns responsible for billions of dollars in damages. Pigott added that the United States and its international partners are increasingly focusing not only on ransomware operators themselves but also on the infrastructure providers and service suppliers that make these attacks possible.
The sanctions were coordinated with the United Kingdom's Foreign, Commonwealth and Development Office as part of a broader international effort to disrupt cybercriminal networks. Under OFAC sanctions, any property or financial interests belonging to the designated individuals or entities that fall under US jurisdiction are blocked. In addition, US individuals and organisations are generally prohibited from engaging in transactions involving the sanctioned parties.
The action forms part of a wider strategy aimed at disrupting the ransomware supply chain by targeting the businesses and technical service providers that support cybercriminal operations. Rather than focusing exclusively on the attackers who deploy ransomware, governments are increasingly using financial sanctions, infrastructure seizures and international law enforcement cooperation to dismantle the broader ecosystem that enables these campaigns.
The sanctions were announced as the European Union and the United Kingdom also introduced coordinated sanctions against dozens of Russian individuals and entities accused of supporting a network of hacking groups responsible for cyberattacks across Europe, reflecting continued international efforts to increase pressure on organisations and individuals believed to facilitate malicious cyber activity.
Polish law enforcement authorities have arrested four suspected members of an organized cybercrime group accused of orchestrating intricate SIM-swapping attacks that allegedly enabled the theft of millions of dollars in cryptocurrency from victims. The coordinated operation was led by Poland's Central Bureau for Combating Cybercrime (CBZC) with operational assistance from the U.S. Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI), highlighting the cross-border nature of the investigation.
According to investigators, the group combined technical intrusions with social engineering techniques to compromise organizations working alongside telecommunications providers. By infiltrating partner infrastructure and gaining unauthorized access to employee email accounts, the suspects allegedly obtained sensitive information that enabled them to perform fraudulent SIM-swapping attacks.
A SIM-swap attack involves transferring a victim's mobile phone number to a SIM card controlled by an attacker. Once the transfer is completed, the attacker can intercept SMS messages, one-time verification codes, password reset requests, and other communications that rely on the victim's phone number for authentication.
Authorities allege that after taking control of victims' mobile numbers, the cybercriminals intercepted SMS-based authentication messages and email communications before using that access to seize control of cryptocurrency exchange accounts. The attackers then transferred digital assets from compromised accounts before attempting to conceal the proceeds through an extensive laundering operation.
Investigators estimate that the criminal scheme generated millions of U.S. dollars in stolen cryptocurrency. The illicit proceeds were allegedly moved through a distributed financial network consisting of multiple domestic and international bank accounts, international payment platforms, and multi-currency digital wallets in an effort to obscure the origin of the funds. Polish authorities estimate that the total amount laundered exceeded tens of millions of Polish złoty, equivalent to at least approximately US$5 million based on current exchange rates.
In a statement describing the operation, CBZC said the suspects relied on specialized software together with social engineering techniques to gain unauthorized access to infrastructure belonging to organizations cooperating with telecommunications operators, as well as employee email accounts. Investigators said the information obtained during those compromises enabled the illegal cloning and takeover of victims' phone numbers through SIM-swapping attacks.
Authorities further stated that the suspects allegedly treated the criminal enterprise as a continuous source of income, repeatedly moving stolen assets across numerous financial accounts and cryptocurrency wallets located in multiple jurisdictions to complicate financial tracing efforts.
All four suspects have been placed in pre-trial detention. They face allegations including participation in an organized criminal organization, unauthorized access to information systems to facilitate theft, and money laundering. If convicted, the offenses carry penalties of up to 25 years' imprisonment under Polish law.
While Polish authorities have not publicly identified the individuals arrested because of the ongoing international investigation, blockchain investigator ZachXBT claimed that one of the detainees is Wojtek Kulisz, also known online by the alias "Merry." The identification was reportedly based on items visible in official footage released during the police operation. Authorities have not independently confirmed that claim.
Investigators have also declined to disclose which cryptocurrency exchanges were affected or identify the victims, citing the continuing international investigation. Law enforcement agencies say efforts to identify additional victims, trace stolen assets, and pursue further investigative leads remain ongoing.
The case stresses the urgency of the risks associated with SMS-based authentication. Security professionals have long advised cryptocurrency investors and organizations to replace SMS-based two-factor authentication with authenticator applications or hardware security keys whenever possible, as SIM-swapping attacks remain an effective method for bypassing text message verification when attackers successfully compromise telecommunications systems or manipulate carrier processes.
Ransomware operators continue to generate substantial profits, with new research from Rapid7 indicating that several cybercrime groups are recording revenue growth that outpaces many publicly traded businesses.
According to the cybersecurity firm's analysis, ransomware groups collectively received an estimated $529.2 million during the first quarter of 2026. That figure represents a 39% increase compared with the same period a year earlier. Rapid7 noted that none of the companies within the FTSE 350 index reported year-over-year revenue growth exceeding 30% during that quarter, placing ransomware operators among the fastest-growing entities examined in the study.
Several well-established ransomware operations appear to be benefiting from this trend. Rapid7 estimates that the Qilin ransomware group generated approximately $193 million between July 2025 and March 2026. During the same period, the Gentleman group is estimated to have collected roughly $52 million in ransom payments.
Rapid7 researchers argue that modern ransomware operations bear little resemblance to the stereotype of small groups of hackers working independently. Instead, many function through interconnected networks of specialists who focus on specific stages of an attack. Some actors gain access to victim networks, others develop malware, while separate teams handle extortion demands and payment negotiations.
A major factor behind this growth is the emergence of Initial Access Brokers, or IABs. These actors specialize in obtaining access to corporate networks and then selling that access to other criminals. As a result, launching a ransomware attack no longer requires extensive technical expertise. Access to compromised systems, attack tools, and even managed cybercrime services can now be purchased through underground marketplaces.
Researchers say this division of labor has created a more structured criminal economy. Different groups contribute individual services, allowing ransomware campaigns to operate through networks that resemble commercial supply chains rather than isolated criminal crews.
The study also highlights the resilience of these operations. Infrastructure used by ransomware groups, including servers, data leak platforms, and victim negotiation portals, can often be restored quickly after disruptions. Law enforcement agencies, meanwhile, frequently require lengthy investigations and international coordination before conducting enforcement actions. This difference in speed allows many criminal networks to continue operating even when portions of their infrastructure are removed.
Rapid7 CTO EMEA Thom Langford said ransomware groups have demonstrated an ability to continue generating revenue despite disruptions because their operations are designed to function even when individual components are taken offline. In many cases, the removal of a single server or criminal group does not significantly affect the broader ecosystem supporting ransomware activity.
The findings come amid continued financial losses linked to cybercrime. According to the FBI's Internet Crime Complaint Center, organizations and individuals reported more than $16 billion in cybercrime losses during 2024, reflecting the growing economic impact of digital fraud, extortion, and network intrusions.
To reduce ransomware risk, Rapid7 recommends that organizations continuously review their exposed systems and identify weaknesses that could provide attackers with an entry point. Particular attention should be given to misconfigured services, overlooked assets, and internet-facing systems, which are frequently targeted by Initial Access Brokers seeking access to corporate environments.
The company also advises security teams to make greater use of threat intelligence to understand how attackers operate, including the infrastructure, tools, and access methods commonly used during intrusions. Researchers further recommend strengthening identity security through tighter access controls, least-privilege policies, and monitoring for signs that employee credentials have been stolen, resold, or abused.
According to Rapid7, disrupting ransomware attacks before attackers establish access remains one of the most effective defensive strategies. By identifying weaknesses early and restricting opportunities for credential theft, organizations may be able to prevent ransomware incidents before they progress to the extortion stage.
For years, Bitcoin was widely associated with cryptocurrency-related crime. New industry data suggests that picture has changed astronomically, with stablecoins now accounting for the vast majority of identified illicit cryptocurrency activity.
The change of terms was accentuated by Bitcoin-focused financial services company River, which cited blockchain intelligence findings showing that Bitcoin's role in unlawful crypto transactions has declined sharply over the past several years. According to data attributed to Chainalysis, Bitcoin represented roughly 70% of illicit cryptocurrency transaction volume in 2020. By 2025, that figure had fallen to approximately 7%, while stablecoins had grown to account for around 84% of identified illicit transaction volume.
The numbers point to a drastic transformation in how cybercriminals, fraud operators, sanctioned entities, and money-laundering networks move digital funds across borders.
Why Stablecoins Are Becoming More Attractive to Criminal Networks
Unlike Bitcoin and many other cryptocurrencies, stablecoins are designed to maintain a relatively fixed value, typically by being linked to a traditional currency such as the U.S. dollar.
This stability removes one of the major risks associated with cryptocurrency transactions. A criminal group holding $1 million in Bitcoin today could see the value fluctuate significantly within days. Stablecoins largely eliminate that uncertainty, allowing illicit actors to move, store, and transfer funds without being exposed to major price swings.
Researchers say this makes stablecoins particularly useful in fraud schemes, investment scams, money-laundering operations, and cross-border transfers where predictable value is important.
The spike in acceptance of stablecoins across exchanges, payment services, and over-the-counter trading networks has also contributed to their increased use. Many stablecoins can be transferred globally within minutes while maintaining a value closely tied to fiat currency, making them practical for both legitimate and illegitimate financial activity.
Bitcoin Still Appears in Certain Criminal Operations
Despite its declining share, Bitcoin has not disappeared from the cybercrime infrastructure. It is still part of the overall pipeline in digital currency exchange.
Blockchain investigators continue to observe Bitcoin being used in ransomware attacks, darknet marketplaces, and extortion schemes. In these environments, long-established infrastructure, existing payment workflows, and familiarity among threat actors continue to support Bitcoin's use.
However, analysts note that criminal organizations are increasingly treating Bitcoin as only one option within a much larger digital financial ecosystem rather than the default cryptocurrency for illicit transactions.
Illicit Crypto Activity Continues to Soar
The change in asset preference comes as blockchain intelligence firms report increases in the overall value of illicit cryptocurrency activity.
TRM Labs recently estimated that illicit cryptocurrency flows reached approximately $158 billion in 2025, representing the highest level recorded by the company. The firm reported a sharp increase from the previous year, attributing much of the growth to sanctions-related activity, sophisticated money-laundering operations, underground financial networks, and expanded use of cryptocurrency by state-linked actors.
A large portion of these transactions involved stablecoins in the grand scheme of carrying out cyber criminal activities.
Researchers also observed that sanctions-evasion networks increasingly rely on stablecoins because of their liquidity, accessibility, and ability to move large sums through multiple jurisdictions with relative speed.
Compliance and Regulatory Pressure Expected to become more stringent
The developing concentration of illicit activity within stablecoin ecosystems is likely to intensify scrutiny from regulators and law-enforcement agencies.
Unlike decentralized cryptocurrencies, many major stablecoins are issued by identifiable companies that maintain reserve assets and have the technical ability to freeze certain wallets when required by legal authorities.
As a result, policymakers are increasingly examining how stablecoin issuers monitor suspicious transactions, respond to sanctions violations, and cooperate with criminal investigations.
Several stablecoin providers have already expanded collaboration with law enforcement agencies. Tether, the issuer of USDT, has publicly reported freezing wallets connected to suspected criminal activity, while blockchain analytics companies continue to develop tracking tools designed to identify suspicious transaction patterns across networks.
Criminal Use Remains a Small Portion of Overall Activity
Although illicit cryptocurrency volumes have risen in absolute terms, researchers caution against interpreting the data as evidence that most cryptocurrency activity is criminal.
Industry reports consistently show that unlawful transactions represent only a small fraction of total blockchain activity. Stablecoins process trillions of dollars in annual transaction volume, meaning the overwhelming majority of transactions are associated with legitimate uses such as payments, trading, remittances, and settlement activities.
Nevertheless, the latest findings draw a clearer picture into how criminal groups adapt quickly to changing financial technologies. While Bitcoin once dominated illicit cryptocurrency transactions, blockchain intelligence data now suggests that stablecoins have become the preferred vehicle for many forms of crypto-enabled financial crime due to their price stability, global accessibility, and ease of transfer.
The trend is expected to remain a driving focus for regulators, compliance teams, cryptocurrency exchanges, and law-enforcement agencies as governments continue developing rules for the rapidly expanding stablecoin sector.