US government sanctions Russian woman who laundered cryptocurrencies for threat actors
Pierluigi Paganini
November 5, 2023
The Treasury Department has sanctioned a Russian woman accused of laundering cryptocurrencies on behalf of cybercriminals.
The Treasury Department’s Office of Foreign Assets Control (OFAC) on Friday sanctioned Russian national Ekaterina Zhdanova for laundering and managing cryptocurrencies on behalf of Russian elites, ransomware operators, and other threat actors.
“Through key intermediaries like Ms. Zhdanova, Russian elites, ransomware groups, and other illegal actors sought to evade U.S. and international sanctions, particularly through the misuse of cryptocurrencies.” said Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence.. “We remain focused on protecting the U.S. and international financial system from those who seek to exploit this technology, among other illicit financial risks in the virtual asset ecosystem.”
Zhdanova also helped Russians, including anonymous oligarchs, evade sanctions imposed on Russia after the invasion of Ukraine. Zhdanova transferred $100 million to the United Arab Emirates on behalf of the Russian oligarchy.
According to Ekaterina Zhdanova, Ministry of Finance OFAC, March 2022. Helped Russian clients obscure the source of their wealth by transferring more than $2.3 million to Western Europe through fraudulently opened investment accounts and real estate purchases.
Zhdanova also supported individuals associated with the Russian ransomware group Ryuk. In 2021, she laundered more than $2.3 million on behalf of Ryuk ransomware affiliates, which were funded by victim payments.
“As a result of today’s action, all property and interests of the named persons named above located in the United States or owned or controlled by U.S. persons will be blocked and must be reported to OFAC. Entities that are 50% or more owned by one or more blocked persons, individually or in the aggregate, are also blocked unless permitted or exempted by a general or specific license issued by OFAC. OFAC regulations generally prohibit all transactions by or in or through the United States that involve the property or ownership of designated or otherwise blocked persons, unless otherwise specified. The Treasury press release concludes: In addition, financial institutions and other persons who engage in certain transactions or activities with sanctioned entities or individuals may be subject to sanctions or subject to enforcement action. You may be eligible.
Follow us on Twitter: @securityaffairs and Facebook and mastodon
(Security related matters – hacking, virtual currency)
