The Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Dmitry Khoroshev, a Russian developer behind the LockBit ransomware program. According to Chainalysis, a blockchain intelligence firm, Khoroshev has engaged with sanctioned Russian crypto services, including Garantex and Bitzlato.
Chainalysis revealed in a blog post that one of Khoroshev’s Bitcoin addresses, known under various aliases like LockBitSupp and putinkrab, received “several thousands of dollars” in cryptocurrency from a mixing service to his personal wallet. The address has seen over 0.75 BTC transactions, valued at approximately $36,000 at current rates, with the latest transaction recorded in September 2021. However, according to U.S. attorney Philip Sellinger, Khoroshev allegedly profited $100 million from extorted funds.
Chainalysis reported that Khoroshev transferred funds to various illicit services, including OFAC-sanctioned entities like Garantex, as well as to crypto mixer Sinbad and Bitzlato, among others. These services are associated with bulletproof hosting, malware, fraud shops, and underground exchanges without Know Your Customer (KYC) protocols.
According to U.S. authorities, Khoroshev allegedly played a key role in the LockBit ransomware group from its inception in September 2019 until May of this year. The group is accused of targeting over 2,500 victims in at least 120 countries, including 1,800 victims in the U.S.
The U.S. Department of Justice alleges that Khoroshev and his associates extracted at least $500 million in ransom payments from victims and caused billions of dollars in broader losses, including lost revenue, expenses for incident response, and recovery efforts.
Summary Review: The recent revelations from Chainalysis underscore the concerning connections between sanctioned Russian developer Dmitry Khoroshev and various illicit crypto services, including Garantex. Khoroshev’s involvement in the LockBit ransomware program, along with his alleged exploitation of victims for substantial financial gain, highlights the pervasive threats posed by cybercriminals in the cryptocurrency ecosystem. The findings serve as a reminder of the importance of regulatory oversight and international cooperation to combat illicit activities and protect users from fraud and exploitation.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
