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Russias Most Prestigious Skyscraper Is Home to Crypto Hackers: Report

In brief

  • Russia has yet again been implicated in a ransomware scandal.
  • The Biden administration has focused on ransomware as a national security threat for months.

In Moscows city center, Russias tallest skyscraperknown as Vostokis facilitating business for hackers, cybercriminals, and money launderers.

According to Bloomberg, experts have successfully linked at least four companies that are either based or operating in Vostok to launder money associated with ransomware activity.

These four companies are Suex OTC, EggChange, Buy-bitcoin.pro.

Suex OTC, per cited Chainalysis data, has processedat a minimum$160 million in Bitcoin from illicit and high-risk sources in the last three years. Previously, Suex OTC also faced sanctions for helping ransomware groups launder their funds.

EggChange faces investigations in both the United States and Europe for alleged money laundering. The Treasury Department reportedly declined to comment.

Buy-bitcoin.pro, per Chainalysis, has also processed thousands of dollars worth of ransomware funds. A chunk of these funds was processed for Hydra, one of the largest darknet markets in the worldand the largest in Russia.

CashBank, the final of the four companies, was reportedly affiliated with accounts that were flagged by Binance for potentially illicit activities.

Binance, in turn, has spent the larger part of a year dealing with regulatory problem after problem.

Back in crypto crosshairs

This is not the first time Russia has served as the epicenter of a ransomwareand cryptocurrencyscandal.

Last year, Russian spies were found to have used $1 million worth of cryptocurrency to meddle in the U.S. 2018 midterm elections. Russian nationals, a member of Ukraines parliament, and a suspected Russian spy were sanctioned as a result.

Last year, the U.S. Treasury Departments Office of Foreign Assets Control (OFAC) sanctioned 16 groups and a further 16 individuals for meddling in the 2020 presidential election.

One company, Secondeye Solution (SES)which provides fraudulent identity documents to buyershad received over $2.5 million worth of cryptocurrencies since 2013.

U.S. foreign policy pivots to ransomware

One of the Biden administrations most significant foreign policy decisions has been its emphasis on ransomwareand the national security threat posed by cryptocurrencies.

A report released by the administration last month warned that digital assets like cryptocurrencies pose a risk to the United States sanctions regime, which, in turn, is a cornerstone of American foreign policy.

These technologies offer malign actors opportunities to hold and transfer funds outside the collar-based financial system. They also empower our adversaries seeking to build new financial and payment systems intended to diminish the dollars global role, the report read.

At the time of writing, the U.S. has over 9,000 sanctions in place, targeting rogue states like North Korea, Iran, and others.

But the administrations crypto and ransomware anxiety go back further than the Treasurys report.

High-profile attacks against the Colonial Pipeline and meat processing firm JBS prompted the administration to take early steps against the illicit side of the industry. Following both attacks, the Justice Department announced that it would elevate ransomware to a similar priority level as terrorism.

This summer, the administration also set up a ransomware task force with the explicit task of combating cyberattacks and tracing cryptocurrency ransom payments.

Whats more, rumors have long circulated that the administration is planning a cryptocurrency-focused executive order, which speculation suggests may further equip President Biden to combat what he perceives to be a serious national security threat.



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