Russian darknet Hydra, crypto exchange Garantex sanctioned by U.S.

Timmy Shen

The U.S. Department of the Treasury sanctioned what it called “the world’s largest and most prominent darknet market” based in Russia and a cryptocurrency exchange associated with ransomware activities.

See related article: Russian-linked strains lead crypto ransomware in 2021: Chainalysis

Fast facts

  • The Treasury Department Tuesday sanctioned Hydra Market, alleging it offered a marketplace for illicit ransomware and hacking software.

  • It also sanctioned a related crypto exchange Garantex, which handled US$6 million in illicit transactions for Russian ransomware gang Conti.

  • The Treasury’s move reinforces its recent efforts to cut Russia from channels that could potentially be used to evade sanctions.

  • About 86% of the illicit Bitcoin received via Russian crypto exchanges in 2019 came from Hydra, the Treasury said.

  • Police in Germany Tuesday shut down Hydra servers there, seizing about US$25 million worth of Bitcoin.

See related article: Russians turn to crypto as Western sanctions hit the ruble

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