US government imposes sanctions on crypto exchange
The US government has imposed sanctions on a cryptocurrency exchange for the first time ever in a bid to clamp down on ransomware attacks.
The Treasury Department’s Office of Foreign Asset Control (OFAC) has decided to blacklist the SUEX exchange over its alleged role in facilitating transactions for ransomware attackers. Analysis of the Russian exchanges’ transactions revealed that over 40 per cent of activity was associated with illicit actors.
“Ransomware and cyber-attacks are victimizing businesses large and small across America and are a direct threat to our economy. We will continue to crack down on malicious actors,” said Treasury Secretary Janet L Yellen.
“As cyber criminals use increasingly sophisticated methods and technology, we are committed to using the full range of measures, to include sanctions and regulatory tools, to disrupt, deter, and prevent ransomware attacks,” she continued.
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The crackdown on ransomware follows a surge in attacks during the pandemic. US Ransomware payments reached over $400m in 2020, more than four times their level in 2019.
SUEX joins OFAC’s blacklist along with 14 Bitcoin addresses and four Ethereum addresses. In a statement, the US Treasury confirmed that it will impose sanctions on anyone who materially assists, sponsors or provide financial, material, or technological support to the actors identified.
The first instance of sanctions being imposed on a cryptocurrency exchange sends a strong signal that regulation is amping up.
The news comes after the G7 committed to working together to urgently address the escalating shared threat from criminal ransomware networks at a meeting in June, indicating that cybercrime is moving up the international political agenda.
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