Sanctioned Russian developer interacts with Garantex, Chainalysis finds

Summary of Key Points:

  • Treasury’s OFAC sanctions Russian developer of LockBit for transferring crypto to illicit services
  • Dmitry Khoroshev, developer of LockBit, interacted with sanctioned Russian crypto services like Garantex and Bitzlato
  • Chainalysis reports on Khoroshev receiving crypto from mixing services to personal wallet
  • Khoroshev allegedly extorted $100 million from LockBit’s victims
  • Khoroshev transferred funds to various illicit services, including Garantex, crypto mixer Sinbad, and Bitzlato

Russian Developer Sanctioned for Crypto Transfers

The Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Dmitry Khoroshev, a Russian developer of the ransomware program LockBit, for transferring crypto to various illicit services, including sanctioned Russian exchange Garantex and other crypto platforms.

Interactions with Illicit Services and Crypto Transfers

Chainalysis reports that Khoroshev, also known as LockBitSupp, received thousands of dollars in crypto from a mixing service to his personal wallet. His on-chain activity shows transactions worth around $36,000, with allegations of extorting $100 million from LockBit’s victims. Khoroshev also transferred funds to OFAC-sanctioned services and illicit platforms without KYC protocols.

Allegations of Ransomware Operation and Financial Impact

U.S. authorities accuse Khoroshev of developing and administering the LockBit ransomware group, which attacked over 2,500 victims globally. They claim Khoroshev extracted at least $500 million in ransom payments, leading to significant financial losses for victims and broader economic impact.

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