Russia’s most feared darknet market- Hydra and a cryptocurrency exchange Garantex are soon to be sanctioned by the United States Department of the Treasury’s Office of Foreign Assets Control for their alleged association with ransomware activities, as per an announcement.
In a press release published on the Treasury Department’s website, Secretary Janet Yellen said, the move against Hydra and Garantex would serve as a reminder to criminals that they can no longer hide on the darknet or their forums.
The U.S. government agency alleged Garantex in particular, saying that it had “willfully disregarded” Anti-Money Laundering and Combating the Financing of Terrorism requirements imposed by many regulators on digital currency exchanges. It further accused that the firm was run by individuals who showed “wanton disregard for regulations and compliance.”
It is to be noted that cybercriminals allegedly linked to Russia are notoriously reputed for their several high-profile attacks around the world. Data from blockchain researchers confirmed that roughly 86% of illicit bitcoin received directly by Russian crypto exchanges in 2019 were traced back to Hydra, which the Treasury Department described as the world’s “largest and most prominent darknet market.”
Additionally, the new sanctions would prevent U.S. citizens from making or receiving “any contribution or provision of funds, goods, or services” to Hydra or Garantex, the Treasury said.
The US dismantle Russia’s largest darknet
The department said the sanctions, which prohibit U.S. transactions with Hydra and Garantex and seek to freeze any assets they may have under U.S. jurisdiction, are part of a global effort to disrupt the overall structure of malicious cybercrime services, drugs, and other illegal offerings, including ransomware activity, that arise out of Russia.
The Treasury worked in tandem with the U.S. Department of Justice, the FBI, and the German Federal Criminal Police, in shutting down several Hydra servers in Germany and seizing $25 million worth of bitcoin.
In September 2021, The U.S Treasury Department had imposed sanctions on Russia-based business Suex OTC for its alleged role in facilitating transactions for ransomware attacks. Since then agencies from the FBI to the Justice Department have been extra vigilant and set up task forces to enforce and investigate malicious actors using cryptocurrencies for illegal activities.