U.K. Sanctions Cryptomus for RU Money Laundering
The United Kingdom has issued economic sanctions against Cryptomus, a chameleonic cryptocurrency platform that experts say serves as a major conduit for payments related to ransomware, narcotics, darknet markets, fraud and cybercrime services that are helping Russia circumvent existing financial restrictions.
The UK has imposed financial sanctions on Cryptomus, a cryptocurrency platform that experts claim is a major conduit for payments related to various illicit activities, including those benefiting Russia. These sanctions, which came into effect on October 8, include freezing any assets held by Cryptomus in UK banks and prohibiting British companies from engaging with the platform.
This action follows the platform's involvement in processing payments for Russian government entities and its financial institutions. The sanctions also target other virtual payment platforms VexPay, TokenSpot, and Tsunami Payments. The platform, formerly known as Certa Payments and Xeltox Enterprises, has undergone several name changes since its inception in 2022.
Chainalysis, a blockchain data-crunching firm, stated that the UK sanctions target the infrastructure supporting Russia's wartime economy, noting that Cryptomus and its successor, Heleket, have become significant payment hubs for illicit activities. The platform had processed over $7 billion in transactions since its launch in 2022, including funds linked to child sexual abuse material vendors, terrorist financing networks, and human trafficking operations.
The sanctions mark the first known instance of a "Five Eyes" country (comprising Australia, Canada, New Zealand, the UK, and the US) sanctioning a cryptocurrency operation incorporated in another Five Eyes jurisdiction.
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