The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced that it had sanctioned several individuals and entities related to a money laundering network that relied on tether (USDT), as well as other cryptocurrencies, to move assets for Russian interests. 

The United Kingdom and the United Arab Emirates collaborated with OFAC to disrupt this network, according to the press release.

In total, OFAC has sanctioned five new individuals and four entities that were associated with the TGR Group money laundering network. 

What did this money laundering network look like?

The TGR Group, allegedly controlled by Ukrainian national George Rossi, supposedly provides services exchanging cash for crypto (and vice versa), a pre-paid card service, and helping enable “Russian nationals to purchase property in the United Kingdom.”

The press release also notes that Rossi “leveraged OFAC-sanctioned Russian crypto exchange, Garantex OU, to process USDT transactions after its date of designation.”

Among Garantex’s alleged wrongdoings was processing a variety of transactions that came from the Hydra dark market. 

Read more: Sanctioned crypto exchange Garantex probed over $20B USDT transfers 

TGR Group’s alleged money laundering network relied on a variety of entities across the world, including in Wyoming. Pullman Global Solutions LLC is allegedly more than half owned by Andrejs Bradens.

Bradens, a Latvian national, not only owns Pullman Global but also has ties to other TGR Group entities, such as TGR Corporate Concierge LTD., a firm based in the United Kingdom. 

According to the Treasury press release, Elena Chirkinyan, who is allegedly “a direct subordinate to Rossi,” leads this entity, which holds significant importance for the network. Chirkinyan was previously allegedly involved in transferring funds from RT (formerly Russia Today); apparently this was “likely to support the activities of a UK-sanctioned Russian-language media organization in the United Kingdom.”

Chirkinyan apparently “also arranged cash handovers in which USDT was sent to a cryptocurrency address… and in return cash was received by the TGR group.”

Chirkinyan additionally allegedly worked on the ability for Russian nationals to purchase property in the United Kingdom.

Analysis from CoinDesk suggests that Tether froze approximately $8 million in USDT yesterday. 

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post US sanctions Russian money laundering network that used USDT appeared first on Protos.

Russian authorities have sentenced Stanislav Moiseyev, the founder of criminal drugs platform Hydra, to life in prison after charging him with organizing a criminal drugs enterprise.

Russia’s state-run news agency reported that Moiseyev was fined 4 million rubles (~$37,000) and sentenced alongside 15 other accomplices by a Moscow court. These accomplices were fined a total of 16 million rubles (~$150,000) and received prison sentences ranging from eight to 23 years.  

Hydra operated out of Russia and Belarus between 2015 and 2018. In 2021, Chainalysis reported that the group processed almost $3.2 billion worth of crypto through various “high-risk” crypto exchanges. Crystal Blockchain also found that $780 million was transacted between Binance and Hydra.

Law enforcement reportedly seized a ton of drugs from the Hydra organization. Moiseyev and his accomplices will reportedly be imprisoned in special and strict regime penal colonies (overcrowded prisons that have been described as the harshest in Russia). 

Hydra, which was seized and shut down by the US in 2022, was one of Garantex’s largest counterparties and sent $60 million to the exchange between 2019 and 2021. Garantex founder Sergey Mendeleev launched a Tether desk last year. 

Hydra, alongside Binance and the Russian Ponzi scheme “The Finiko,” were the top three counterparties of Bitzlato, a crypto exchange that processed over $700 million worth of illicit funds. Bitzlato’s founder pleaded guilty to operating an illicit money-transmitting business a year ago.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Russia sentences Hydra marketplace founder to life in prison appeared first on Protos.

Hot on the heels of approving crypto mining regulations in Russia, President Vladimir Putin has inked a new law that classifies cryptocurrency as property, allowing its use in certain foreign trade settlements.

Signed on Friday, the document also exempts the mining and selling of crypto from value-added-tax (VAT).

Digital currency earned through mining is now classified in Russia as “income in kind” and taxed at market rates, while personal income tax is 13% up to 2.4 million rubles ($22,000) and 15% for higher amounts. Corporate income tax will be the standard 25%.

Crypto mining infrastructure operators will be required to report their clients to the tax authorities or risk a fine of 40,000 rubles ($370).

Under the new law, miners and traders will no longer be able to apply for certain tax cuts, such as single agricultural tax.

Read more: Russian investigator handed 16 years in jail for accepting 1,032-bitcoin bribe

The rather bullish move comes after Putin signed a law outlining the rights and obligations of crypto mining firms, which came into effect on November 1.

Existing non-registered entities were greenlit for mining operations subject to limits like an energy consumption cap. The law also gave the government the authority to ban crypto mining in certain territories.

Certain companies were also authorized to make international payments under the new law, via the Bank of Russia.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Putin signs law deeming crypto as property exempt from VAT appeared first on Protos.

Russian authorities have announced plans to ban crypto mining across occupied territories of Ukraine as the war between the two nations ticked over into its thousandth day.

Russia’s Deputy Prime Minister Alexander Novak led a meeting attended by top ministers at which they reportedly discussed the country’s “difficult regime-balance” and how it is impacting an electricity industry that sees a lack of supply and capacity during the autumn-winter months. 

According to the Moscow Times, Russia’s government is covering all bases — including invaded ones — with a proposed crypto mining ban that extends to captured Ukraine territories, such as the Donetsk, Lugansk, Zaporizhia, and Kherson regions. 

Read more: Paraguay shuts illegal bitcoin mines that stole enough power to light a city

A further six territories in Russia’s North Caucasus region will also face a flat-out ban on crypto mining activities until 2031. The Irkutsk, some of Buryatia, and Zabaikalsky Krai regions will face a partial mining ban in the autumn-winter months until 2031.

Russia passed a law in July that legalized crypto mining from November 1. That means there were just 18 days between its legalization and banning.

Today marks 1,000 days since Russia decided to invade Ukraine. Today also saw the first time Ukraine launched US-provided long-range missiles into Russian territory since the White House lifted a ban on their use in the conflict. 

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Russia to ban crypto mining across invaded Ukraine regions appeared first on Protos.

Russia has sentenced a former chief investigator to 16 years in jail after he was caught accepting a 1,032-bitcoin bribe, now worth $65 million, from a group of hackers. 

Marat Tambiyev was accused last year of accepting the bitcoin bribe from a duo involved with the Infraud Organization hacking group he was investigating while working for the Investigative Committee of Russia.

As part of the deal, Tambiyev agreed not to confiscate the group’s illegally obtained bitcoin. He subsequently received half of the illegal assets on April 7, 2022.

Read more: Supreme Court won’t stop sale of 69,370 Silk Road bitcoins

In 2023, Russian authorities discovered the bitcoin on a Mac under a file labeled ‘Pension.’ Authorities deduced that the sum made no sense given his job could have only made him 11.7 million rubles ($144,000).

Tambiyev reportedly denies the charges and claims he was framed. He intends to appeal the sentencing alongside Kristina Lyakhovenko, a colleague who was jailed for nine years for her role in the same case. 

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Russian investigator handed 16 years in jail for accepting 1,032-bitcoin bribe appeared first on Protos.

Russian hackers are using a network of AI-based ‘nudify’ sites to deliver malware capable of stealing crypto wallet login details.

As reported by 404 Media, cybersecurity researchers Silent Push discovered that Russian ransomware group Fin7 has created at least seven different AI-generated deepfake sites that create non-consensual nude images.

The sites steal crypto credentials and other sensitive data using ‘RedLine’ and ‘Lumma’ malware. Users are infected after downloading the supposed nudify software through a Dropbox link, or by applying for a free trial, which also prompts users to download the malicious malware.  

Read more: High treason charge for Russian man who ‘sent crypto to Ukraine’

According to Zach Edwards, a senior threat analyst for Silent Push, the nudify pivot targets “men with a decent amount who use other AI software or have crypto accounts.”

“There’s a specific type of audience who wants to be on the bleeding edge of creepy (while ignoring new laws around deepfakes), and who are proactively searching out deepfake AI nude software,” Edwards told 404 Media. 

Russian hackers are hot this week after the US took enforcement action against crypto exchanges Cryptex and PM2BTC, and a suspected money launderer for ransomware users and a number of other criminal enterprises.

On Wednesday, Russia announced that it arrested almost 100 people suspected of laundering on behalf of cybercriminals and hackers.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Russian hackers are using deepfake porn sites to steal crypto appeared first on Protos.

In the quiet streets of Komsomolsk-on-Amur, a city in Russia’s Far East, an unidentified man has reportedly been arrested on suspicion of high treason for sending cryptocurrency to Ukraine’s armed forces.

The crypto was allegedly sent to Ukraine’s military with the intent to “purchase weapons, ammunition, and uniforms,” according to state-owned Russian outlet Izvestia.

Russia’s top intelligence agency, the Federal Security Service (FSB), shared a video of the arrest on Wednesday. It depicts several agents rushing out of a vehicle and pinning the man to the ground with his arms behind his back. He’s then handcuffed, detained, and interviewed.

Read more: No, a crypto CEO wasn’t arrested for smuggling 20,000 condoms

Russian man accused of sending crypto to Ukraine may get hefty sentence

This arrest marks the latest in a string of charges against alleged Ukraine supporters. The day prior, on September 17, a man in Mariupol was also arrested for high treason. He’s accused of sharing sensitive information with Ukraine’s intelligence agency about the location of Russian troops and units, with the intent to eliminate them.

It remains unclear what sentences these unidentified men may receive if found guilty. However, two weeks ago, physicist Alexander Shiplyuk received 15 years in prison after being found guilty of “state treason.” The private trial found that while Shiplyuk was working on Russia’s hypersonic missile program in 2017, he shared classified information at an overseas conference with German intelligence. Shiplyuk denied the charges, and reportedly refused a plea deal.

The physicist’s colleague, 77-year-old scientist Anatoly Maslov, was similarly accused. Despite denying all allegations, he was sentenced to 14 years in prison back in May. If he survives, Maslov will be 90 years old upon his release.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post High treason charge for Russian man who ‘sent crypto to Ukraine’ appeared first on Protos.

A Russia-based former analyst at the US Department of Homeland Security (DHS) who became the leader of a designated neo-Nazi terror group is looking to hire a US counterpart using crypto.

As reported by the Guardian, 51-year-old Rinaldo Nazzaro, who previously worked as a contractor for the Pentagon, posted on Telegram that he’s looking to hire a stateside leader for his paramilitary group, The Base.  

The Base follows white nationalist and accelerationist ideologies and was designated as a terrorist group in the UK, Australia, New Zealand, Canada, and European Union. The group believes in white ethnostates and encourages terrorism and violent measures to achieve its aims. 

Nazzaro offered to pay the new hire $1,200 a month which will be funded by him and through monthly donations in bitcoin and Monero. The group is expected to recruit and manage up to 12 members in preparation for a supposed US civil war or societal collapse.

Read more: New Ronin Bridge hack down to dodgy upgrade, team banks on ‘white hat’ op

The hire will organize and document monthly team training sessions and requires “knowledge and experience in fieldcraft, wilderness survival, and/or small unit tactics.” Nazzaro noted, “Prior military experience is not required but is highly desirable.” 

The Guardian reported that Nazzaro purchased land near Republic, Washington, and that the job listing also seeks a candidate living near the location. Another member of The Base, who founded the New England-based neo-Nazi group NSC-131, also raised over $15,000 in funding via donations and crypto schemes. 

Counter Extremism Project analyst Joshua Fisher-Birch told the Guardian, “Nazzaro has claimed that he has supported the accelerationist movement with over $10,000 through his ‘personal stash of crypto.’

Fisher-Birch suggested that these neo-Nazi groups are keeping a low profile, but added, “Their focus on promoting chaos raises the possibility that they will encourage violence or commit acts of intimidation before the election.”

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Neo-Nazi solicits crypto donations to build US-based team for ‘civil war’ appeared first on Protos.

Russia is reportedly set to swap two prisoners — a Wall Street Journal reporter and a former US marine — for a number of Russians held by the US and its allies, including the operator of the BTC-e crypto exchange, Alexander Vinnik.

Bloomberg reported today that journalist Evan Gershkovich and Marine Paul Whelan are en route to locations outside of Russia. 

According to a report from Business Insider that cites state-run Russian outlet TASS, Vinnik, Vladislav Klyushin, Vadim Konoschenko, and Maxim Marchenko, will be sent in the other direction and their names have now been removed from the FBI electronic database.

Read more: No, Russia did not just lift its ban on domestic crypto use

In May this year, Vinnik pleaded guilty to conspiracy to commit money laundering while working at BTC-e. He was responsible for the loss of around $121 million and encouraged criminals to use the platform to launder and store their illegal proceeds.

It was reported in May that Vinnik was optimistic of a prisoner swap deal. Indeed, filings by his lawyer discuss how “he has been the subject of political negotiations over a prisoner swap with Russia at the highest levels of the government.” 

Gershkovich and Whelan were both arrested on espionage charges in March 2023 and December 2020 respectively. The US denies these charges.

Update August 2, 14:58 UTC: Business Insider suggested Alexander Vinnik may be part of the prisoner exchange based on records seen by Russian outlet TASS. WIRED journalist Andy Greenberg has since reported that Vinnik was not included in yesterday’s prisoner swap.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Russia to swap WSJ reporter Gershkovich for BTC-e founder Vinnik, report appeared first on Protos.

A fake news story circulated today about Russia’s supposed embrace of bitcoin mining and crypto payments. According to excited social media posts, after the lower house of Russia’s legislature passed a bill, Russia “embraces crypto,” “formally legalizes cryptocurrencies,” “has approved a bill on cryptocurrency mining,” and will “legalize bitcoin and crypto as a foreign currency.”

The news was barely — if at all — true. But this time, the fake news wasn’t Russia’s fault.

Read more: No, Saudi Arabia isn’t ditching the dollar for Ripple in its oil trades

The doctored media were not a purposeful, Kremlin misinformation campaign. Instead, the public simply doesn’t understand Russian law or the Kremlin’s long history of making ceremonial or vacuous announcements regarding crypto use.

What actually happened with Russian crypto law today

In reality, Russia’s lower house, or ‘State Duma,’ passed a bill today that allows certain Russian businesses to use crypto assets — not for domestic payments, but for international trade. That’s the singular, newsworthy occurrence — the passage of a not-yet-enacted bill from one house of Russia’s legislature that has already been known since November 2022.

The remainder of the posts to social media about that event overstated this event’s importance.

In truth, no law will go into effect today. At the earliest, according to a Reuters fact check, that will happen in September. Moreover, the first transactions affected by this new law will occur “sometime before the end of the year.”

Second, the law has no impact on domestic crypto use. The bill exclusively relates to cross-border payments and non-trading, non-payment-related mining operations.

Third, and even more underwhelmingly, the bill requires Russia’s central bank to create new infrastructure for these crypto payments. This infrastructure, according to Reuters, is undeveloped and has no set schedule for public release.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post No, Russia did not just lift its ban on domestic crypto use appeared first on Protos.