The Security Service of Ukraine (SBU) closed down several underground cryptocurrency exchanges used to anonymise transactions.
- Ukraine shuts down a network of cryptocurrency exchanges that allow criminals to launder money.
- The amount of money laundered through the exchanges in a month was $12 million.
The Security Service of Ukraine (SBU) closed down several underground cryptocurrency exchanges used to anonymise transactions.
Over 1,000 "customers" used the clandestine exchanges to launder funds received from Russian electronic payments processors, including Yandex.Money, Qiwi, and Webmoney.
“The clandestine cryptocurrency exchanges were in demand because they provided anonymity of transactions and possibility of money laundering," said the SBU.
The monthly volume of funds laundered was $11 million, a tiny portion of the billions worth of cryptocurrency assets legally transacted through the top 10 exchanges each month.
However, the admins could still make more than $500,000 as they received between 5 and 10% interest from each transaction.
According to the report, there were searches done at five locations in the Pecherskyi, Shevchenkivskyi and Solomianskyi districts of Kyiv, and the law officers seized:
- computers and server machines with the evidence of illegal activity;
- mobile devices with VPN software installed;
- seals and incorporation documents of dummy companies, registered in Ukraine and used for money laundering activities;
- $37,330 in cash.
“Among the clients of the cryptocurrency exchange network were organisers of mass protests on the eve of the Independence Day of Ukraine," claims the SBU. "They received money to pay for the services of provocateurs using this particular network."
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