Authorities in the United States have charged two Russian nationals with carrying out widespread cyberattacks using Phobos ransomware. The suspects, Roman Berezhnoy (33) and Egor Nikolaevich Glebov (39), were arrested in Thailand for allegedly orchestrating more than a thousand attacks worldwide.
Cybercriminals Behind the Phobos Ransomware Attacks
According to the U.S. Department of Justice (DoJ), both men were actively involved in cybercrime from 2019 to 2024. They were linked to two hacking groups known as "8Base" and "Affiliate 2803," which were responsible for spreading Phobos ransomware.
Their method of attack involved infiltrating computer networks, stealing important files, and encrypting them using ransomware. Victims were then left with no access to their own data unless they paid a ransom. If payments were not made, the attackers allegedly threatened to leak sensitive information to the public or to the organizations’ clients and partners.
Legal Charges and Possible Consequences
The two men now face multiple serious charges, including:
1. Fraud involving online transactions
2. Hacking into protected systems
3. Intentional damage to computer networks
4. Extortion through cyber threats
If found guilty, the penalties could be severe. Wire fraud charges alone could lead to a 20-year prison sentence, while hacking-related crimes carry additional penalties of up to 10 years.
International Crackdown on Ransomware Operations
In a coordinated effort, Europol and other international agencies have shut down 27 servers used by the 8Base ransomware group. This action has significantly disrupted the cybercriminal network.
Authorities also revealed that a previous arrest in Italy in 2023 helped law enforcement gather intelligence on Phobos ransomware operations. This intelligence allowed them to prevent over 400 potential cyberattacks and take down key infrastructure used by the hackers.
What This Means for Cybersecurity
Phobos ransomware has been a major cyber threat since 2018, targeting businesses and organizations worldwide. While these arrests and crackdowns have weakened the group, it is uncertain whether this will fully eliminate their operations.
This case highlights the growing efforts by global law enforcement agencies to combat cybercrime. Businesses and individuals are urged to remain cautious, implement strong security measures, and stay informed about evolving cyber threats.
A tremendous blow has been dealt to global cybercrime after US authorities charged two Russian nationals with masterminding a giant cryptocurrency money laundering network. After being charged by the U.S., the two Russian nationals are alleged to have headmastered a giant cryptocurrency money laundering network. The couple laundered the billions through crypto exchange services, concealing ill-gotten gains from cyber frauds, ransomware, and dark web narcotics.
DOJ officials collaborated with worldwide law enforcement to obtain servers and USD 7 million in cryptocurrency from the network, effectively crippling the criminal organisation.
DOJ says the two Russians to be arraigned, Sergey Ivanov and Timur Shakhmametov, played a significant role in one of the largest money laundering operations. They traded billions of dollars for international cybercriminals through various cryptocurrency exchanges, including platforms like Cryptex and Joker's Stash. Their operation enabled criminals to avail themselves of the anonymity associated with cryptocurrencies, avoiding financial regulations, and even making their laundered funds more portable and unobservable.
Investigators said Ivanov operated Cryptex, a site that processed more than $1.15 billion in cryptocurrency transactions. Of that, $441 million was directly linked to crimes, including $297 million in fraud and $115 million in ransomware payments. Cryptex offered criminals a loophole because it didn't require users to have their IDs verified—a "know-your-customer" (KYC) compliance process would have made their transactions traceable.
Besides Cryptex, the operation made it possible to conduct many other illegal activities on the dark web like carding sites-Rescator and Joker's Stash. The said platforms, especially Joker's Stash, deal in stolen payment card information. Estimated proceeds from these operations ranged around $280 million to up to $1 billion. One of the defendants, Shakhmametov was said to manage Joker's Stash, and hence the extent of this criminal network increased.
Indeed, international cooperation figured quite largely into taking down this elaborate criminal enterprise. US authorities teamed with law enforcement agencies from other countries, such as Dutch authorities, to take down servers hosting such platforms as PM2BTC and Cryptex, located in several different countries, which have disrupted the operation. Moreover, law enforcement seized more than $7 million in cryptocurrency on those servers from the organisation.
According to the Justice Department, bitcoin transactions through Cryptex were pegged at 28% to the darknet markets that are U.S.-sanctioned, as well as other crime enterprises. This percentage emphasises the colossal level of participation that such exchanges provided in furthering cybercrimes at a worldwide level.
The case reminds everyone that efforts at a global level are aimed at fighting the same cybercrime supported by cryptocurrencies. The DOJ has already communicated while working with other U.S. agencies, including the Department of State and the Treasury, that it will continue the crusade against those who use digital currencies for nefarious activities. In this case, the dismantling of this billion-dollar laundering network makes it a milestone victory for law enforcement and a warning to others in similar operations.
As cryptocurrency increases in usage, so does its misuse. Even though digital currencies offer immense legitimate advantages, they also provide criminals with a conduit to bypass traditional financial systems. This makes it pretty evident that the breaking down of Cryptex and Joker's Stash serves as a harsh reminder of how much importance needs to be given to strict security and regulatory measures so that such practices cannot be made using the system for nefarious purposes.
The recent charges suggest that U.S. and international law enforcement agencies are attacking cybercrime networks, especially those using cryptocurrency as a cover for under-the-radar activities. By taking down these systems, the authorities would find it more challenging for cybercrimes to cover up their illegal sources of income and further reduce the threat of rising cybercrime globally.
Hence, this high-profile case should awaken business entities and private individuals dealing in cryptocurrencies to take extreme care that they do not engage in any activity contrary to regulations set to monitor money laundering and other illegal activities.
According to Damian Williams, the U.S. attorney for the Southern District of New York, this was the second case their firm was announcing that is highlighting the case of “fraud in the cryptocurrency and digital asset ecosystem.”
As noted by the DOJ, Ahmed – a former security engineer for an “international technology company” – was able to "fraudulently obtain" from the aforementioned exchange almost $9 million worth of cryptocurrencies. He executed this by creating bogus dates for pricing, in order to produce the fees that he later withdrew for himself.
Williams further added, "We also allege that he then laundered the stolen funds through a series of complex transfers on the blockchain where he swapped cryptocurrencies, hopped across different crypto blockchains, and used overseas crypto exchanges. But none of those actions covered the defendant's tracks or fooled law enforcement, and they certainly didn't stop my Office or our law enforcement partners from following the money."
Ahmed is also charged with allegedly attempting to steal more money from the exchange via "flash loan" attacks, another type of crypto vulnerability
While it was initially imprecise as to what company the accused had worked for, cybersecurity blogger Jackie Singh on Tuesday mentioned that Ahmed was a former Amazon employee. Jackie further mentioned several other online profiles the accused appeared to have links with.
According to a LinkedIn profile that matches Ahmed's job description, he works at Amazon as a "Senior Security Engineer" and has worked there since November 2020. The user's profile continues to claim Amazon as his employer. However, it is still unclear if this profile is in fact representing Ahmed.
Following this, Amazon was contacted to confirm the aforementioned details, to which the company confirmed that he had worked for Amazon. However he is no longer employed with the company, they added. The tech giant said that it could not provide any further information regarding his role in the company.
Moreover, a report by Inner City Press – a New York outlet – confirms that Ahmed appeared at the court following his detainment on Tuesday. The report mentions him wearing flip-flops, shorts, and a T-shirt saying “I code,” to the court hearing. Later, he was released on bond after pleading not guilty and will be permitted to continue living in his Manhattan apartment, according to the site.
The US Department of Justice confirmed the issue and charged Denis Gennadievich Kulkov, a citizen of Russia, for being involved in operating a fraudulent credit card checking business that brought in tens of millions of dollars.
The underground service Try2Check, which Kulkov is believed to have founded in 2005, quickly gained enormous popularity among online criminals engaged in the illicit credit card trade and enabled the suspect to earn at least $18 million in bitcoin.
Apparently, Try2Check leveraged the unnamed company’s “preauthorization” service, whereby a business, such as a hotel, requests that the payment processing firm preauthorizes a charge on a customer’s card to confirm that it is valid and has the necessary credit available. Try2Check impersonated a merchant seeking preauthorization in order to extract information about credit card validity.
The services were used by individuals dealing with both the bulk purchase and sale of credit card credentials and were required to check the percentage of valid and active credit cards, including dark web markets like Joker's Stash for card testing.
By using Try2Check services, the defendant duped a well-known U.S. payment processing company whose systems were used to execute the card checks, in addition to credit card holders and issuers.
The services have now been dismantled following a collaborative measure taken by the US Government and partners in Germany and Austria, including units in the Austrian Criminal Intelligence Service, the German Federal Criminal Police Office (B.A.), the German Federal Office for Information Security (B.S.), and the French Central Directorate of the Judicial Police (DCPJ).
"Try2Check ran tens of millions of credit card checks per year and supported the operations of major card shops that made hundreds of millions in bitcoin in profits[…]Over a nine-month period in 2018, the site performed at least 16 million checks, and over a 13-month period beginning in September 2021, the site performed at least 17 million checks," the DOJ stated.
In addition to this, the US State Department in partnership with the US Secret Service has offered a $10 million reward through the Transnational Organized Crime Rewards Program (TOCRP) for anyone who can help find Kulkov, who is currently a resident of Russia. If found guilty, Kulkov will face a 20-year-imprisonment.
"The individual named in today's indictment is accused of operating a criminal service with immeasurable reach to fund further illicit activity with global impact[…]Thanks to the cooperation and dedication of our global law enforcement community, Try2Check can no longer serve as a vehicle for continued criminal activity or illicit profits," said U.S. Secret Service Special Agent in Charge Patrick J. Freaney.