The United Kingdom has issued economic sanctions against Cryptomus, a cryptocurrency platform accused of facilitating payments for ransomware, narcotics, darknet markets, fraud, and cybercrime services that help Russia evade financial restrictions. The sanctions, issued on October 8, freeze any Cryptomus assets in U.K. banks and prohibit British companies from engaging with the platform. Cryptomus, previously known as Certa Payments and Xeltox Enterprises, has rebranded multiple times, most recently to Heleket after a CAD $176 million fine in Canada for anti-money laundering violations.
The U.K. action also targeted Vex Pay, Token Spot, and Tsunami Payments. Blockchain analysts Chainalysis and TRM Labs reported that Cryptomus processed over $7 billion in transactions since 2022, including links to child sexual abuse material, terrorist financing, and human trafficking. Despite implementing KYC rules, the platform allegedly launched Heleket to continue no-KYC operations.
Richard Sanders, a blockchain investigator, emphasized that sanctions, unlike fines, effectively halt operations. He noted this marks the first known case of a Five Eyes country sanctioning a crypto entity incorporated in another Five Eyes jurisdiction.
Source: Hacker News · Summarized by HeadlinesBriefing