PM2BTC, a Russian-based cryptocurrency exchange operated by Sergey Sergeevich Ivanov, has been critically identified as a major facilitator of money laundering and ransomware payments tied to Russian illicit finance. Nearly half of its transaction volume is connected to criminal activity, underscoring its central role in cybercrime financing and sanctions evasion schemes. The exchange employed sophisticated obfuscation and layering techniques to hide illicit transactions, facilitating the conversion of virtual currencies directly into Russian rubles through U.S.-sanctioned financial institutions. This undermines global efforts to combat ransomware proliferation and financial crime. U.S. authorities including FinCEN and OFAC have acted decisively, imposing sanctions and prohibiting U.S. financial interactions with PM2BTC to disrupt its operations and cut off access to the international financial system, highlighting the urgent need for enhanced regulatory oversight of crypto platforms involved in global illicit finance.
PM2BTC is a Russian-based cryptocurrency exchange controlled by Sergey Sergeevich Ivanov that operated since 2014 as a major conduit for laundering proceeds from ransomware attacks and other illicit cyber activities linked to Russian cybercriminal networks. It offered direct convertible virtual currency to ruble exchange services via U.S.-sanctioned financial institutions, aiding sanctions evasion and facilitating the monetization of funds stolen through ransomware and fraud schemes. FinCEN’s investigation exposed that nearly half of PM2BTC’s transactions were connected to illicit activity, with the exchange employing advanced obfuscation methods to mask the money trails, setting it apart as a significant facilitator in global ransomware finance. The U.S. Treasury and international enforcement agencies coordinated to freeze assets, shut down operations, and sanction involved individuals, marking a critical step in disrupting Russian crypto-enabled money laundering on a global scale.
