Russia Launches Criminal Probe Against UAPS and Cryptex Founders

Russia has initiated a criminal case against the founders of the anonymous payment system UAPS and the cryptocurrency exchange Cryptex. This development comes shortly after the Office of Foreign Assets Control (OFAC) imposed sanctions on these platforms.

Allegations and Criminal Activities

Russian authorities allege that the founders of UAPS and Cryptex generated over 3.7 billion rubles (approximately $40 million) through illicit activities. According to an October 2 report from Russia’s state-run TASS news agency, the probe is being led by Moscow’s Investigative Committee. The investigation focuses on claims of illegal banking activities, unauthorized access to protected information, and the operation of an unlicensed payment infrastructure.

Background of UAPS and Cryptex

UAPS, established in 2013, and Cryptex, launched in 2018, were designed to support 33 online services primarily used by cybercriminals. These services included currency exchanges, cash withdrawals, and the sale of bank cards. The platforms facilitated money laundering activities, with more than 112 billion rubles (around $1.2 billion) flowing through the network in 2023 alone.

Key Actions by Russian Authorities

Russian law enforcement agencies have conducted 148 searches across 14 regions, detaining 96 suspects. Many of these individuals face charges related to organized crime and illegal banking activities.

OFAC’s Sanctions and Designations

The criminal probe follows OFAC’s September 26 designation of Cryptex and its founder, Sergey Ivanov, as key facilitators of illicit financial activities. OFAC claims that Cryptex and UAPS were involved in laundering funds for ransomware payments, darknet markets, and fraud shops.

The U.S. Treasury’s Financial Crimes Enforcement Network identified Ivanov’s other exchange, PM2BTC, as a primary money laundering concern under the Combating Russian Money Laundering Act. This marks one of the most significant actions against cryptocurrency exchanges.

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