The USA right this moment unveiled sanctions and indictments towards the alleged proprietor of Joker’s Stash, a now-defunct cybercrime retailer that peddled tens of thousands and thousands of fee playing cards stolen in a few of the largest knowledge breaches of the previous decade. The federal government additionally indicted and sanctioned a high Russian cybercriminal generally known as Taleon, whose cryptocurrency alternate Cryptex has developed into one in all Russia’s most energetic cash laundering networks.
A 2016 display shot of the Joker’s Stash homepage. The hyperlinks have been redacted.
The U.S. Division of Justice (DOJ) right this moment unsealed an indictment towards a 38-year-old man from Novosibirsk, Russia for allegedly working Joker’s Stash, an especially profitable carding store that got here on-line in late 2014. Joker’s offered playing cards stolen in a gradual drip of breaches at U.S. retailers, together with Saks Fifth Avenue, Lord and Taylor, Bebe Shops, Hilton Resorts, Jason’s Deli, Entire Meals, Chipotle, Wawa, Sonic Drive-In, the Hy-Vee grocery store chain, Buca Di Beppo, and Dickey’s BBQ.
The federal government believes the brains behind Joker’s Stash is Timur Kamilevich Shakhmametov, a person who’s listed in Russian incorporation paperwork as the proprietor of Arpa Plus, a Novosibirsk firm that makes cell video games.
Early in his profession (circa 2000) Shakhmametov was generally known as “v1pee” and was the founding father of the Russian hacker group nerf[.]ru, which periodically printed hacking instruments and exploits for software program vulnerabilities.
The Russian hacker group Nerf as described in a March 2006 article within the Russian hacker journal xakep.ru.
By 2004, v1pee had adopted the moniker “Vega” on the unique Russian language hacking discussion board Mazafaka, the place this consumer turned one of many extra dependable distributors of stolen fee playing cards.
Within the years that adopted, Vega would cement his popularity as a high carder on different boards, together with Verified, DirectConnection, and Carder[.]professional.
Vega additionally turned generally known as somebody who had the within observe on “limitless cashouts,” a globally coordinated cybercrime scheme wherein crooks hack a financial institution or fee card processor and use cloned playing cards at money machines to quickly withdraw thousands and thousands of {dollars} in just some hours.
“Hello, there may be work on d+p, limitless,” Vega wrote in a personal message to a different consumer on Verified in Dec. 2012, referring to “dumps and PINs,” the slang time period for stolen debit playing cards with the corresponding PINs that may enable ATM withdrawals.
This batch of some 5 million playing cards put up on the market Sept. 26, 2017 on the now-defunct carding web site Joker’s Stash has been tied to a breach at Sonic Drive-In.
Joker’s Stash got here on-line within the wake of a number of monumental card breaches at retailers like Goal and House Depot, and the ensuing glut of stock had depressed costs for stolen playing cards. However Joker’s would distinguish itself by catering to high-roller clients — primarily road gangs in the US that may buy 1000’s of stolen fee playing cards in a single go.
Confronted with a purchaser’s market, Joker’s Stash set themselves aside by specializing in loyalty packages, frequent purchaser reductions, money-back ensures, and simply plain good customer support. Massive spenders got entry to probably the most freshly hacked fee playing cards, and have been provided the power to get free substitute playing cards if any turned out to be duds.
Joker’s Stash additionally was distinctive as a result of it claimed to promote solely fee playing cards that its personal hackers had stolen straight from retailers. On the time, card retailers sometimes resold fee playing cards that have been stolen and equipped by many third-party hackers of unknown reliability or popularity.
In January 2021, Joker’s Stash introduced it was closing up store, after European authorities seized numerous servers for the fraud retailer, and its proprietor got here down with the Coronavirus.
A DOJ assertion credit the U.S. Secret Service for main the years-long investigations (the Service’s authentic mandate was not defending the president; it was pursuing counterfeiters, and modern-day carders positively qualify as that). Prosecutors allege Joker’s Stash earned revenues of at the least $280 million, however presumably greater than $1 billion (the broad vary is a consequence of a number of variables, together with the speedy fluctuation within the worth of bitcoin and the stolen items they have been peddling).
TALEON
The proprietors of Joker’s Stash might have offered tens of thousands and thousands of stolen fee playing cards, however Taleon is by far the larger fish on this regulation enforcement motion as a result of his numerous cryptocurrency and money exchanges have allegedly helped to maneuver billions of {dollars} into and out of Russia over the previous 20 years.
An indictment unsealed right this moment names Taleon as Sergey Sergeevich Ivanov, 44, of Saint Petersburg, Russia. The federal government says Ivanov, who doubtless modified his surname from Omelnitskii in some unspecified time in the future, laundered cash for Joker’s Stash, amongst many different cybercrime shops.
In an announcement right this moment, the Treasury Division mentioned Ivanov has laundered a whole lot of thousands and thousands of {dollars}’ price of digital foreign money for ransomware actors, preliminary entry brokers, darknet market distributors, and different felony actors for about the final 20 years.
First showing on Mazafaka within the early 2000s, Taleon was recognized on the boards as somebody who might reliably transfer giant quantities of bodily money. Sources aware of the investigation mentioned Taleon’s service emerged as one of many few remaining home money supply providers nonetheless working after Russia invaded Ukraine in Feb. 2022.
Taleon arrange his service to facilitate transfers between Moscow, St. Petersburg and monetary establishments within the West. Taleon’s personal messages on some hacker boards have been leaked over time and listed by the cyber intelligence platform Intel 471. These messages point out Taleon labored on lots of the identical ATM cashouts as Vegas, so it’s clear the 2 had a longtime enterprise relationship nicely earlier than Joker’s Stash got here into being.
Someday round 2013, Taleon launched a partnership with a cash switch enterprise referred to as pm2btc[.]me. PM2BTC allowed clients to transform funds from the digital foreign money Good Cash (PM) into bitcoin, after which have the stability (minus a processing payment) accessible on a bodily debit card that could possibly be used at ATMs, for procuring on-line, or at retail shops.
A screenshot of an internet site reviewing PM2BTC.
The U.S. authorities itself set issues in movement for Taleon’s nascent cryptocurrency alternate enterprise in 2013 after the DOJ levied cash laundering prices towards the proprietors of Liberty Reserve, one of many largest digital currencies in operation on the time. Liberty Reserve was closely utilized by cybercriminals of all stripes. The federal government mentioned the service had greater than 1,000,000 customers worldwide, and laundered in extra of $6 billion in suspected felony proceeds.
Within the days following the takedown of Liberty Reserve, KrebsOnSecurity ran a narrative that examined discussions throughout a number of high Russian cybercrime boards about the place crooks might really feel secure parking their stolen funds. The reply concerned Bitcoin, but additionally Taleon’s new service.
UAPS
A part of the attraction of Taleon’s alternate was that it gave its vetted clients an “utility programming interface” or API that made it easy for dodgy on-line retailers promoting stolen items and cybercrime providers to simply accept cryptocurrency deposits from their clients, and to handle payouts to any suppliers and associates.
This API is synonymous with a service Taleon and buddies function within the background referred to as UAPS, brief for “Common Nameless Fee System.” UAPS has passed by a number of different names together with “Pinpays,” and in October 2014 it landed Joker’s Stash as its first huge consumer.
A supply with information of the investigation informed KrebsOnSecurity that Taleon is a pilot who owns and flies round in his personal helicopter.
Ivanov seems to have little to no social media presence, however the 40-year-old girl he lives with in St. Petersburg does, and he or she has a photograph on her Vktontake web page that reveals the 2 of them in 2019 flying over Lake Ladoga, a big physique of water straight north of St. Petersburg.
Sergey “Taleon” Ivanov (proper) in 2019 in his helicopter with the lady he lives with, flying over a lake north of St. Petersburg, Russia.
BRIANS CLUB
In late 2015, a significant competitor to Joker’s Stash emerged utilizing UAPS for its back-end funds: BriansClub. BriansClub sullies this writer’s title, images and popularity to hawk thousands and thousands of credit score and debit playing cards stolen from retailers in the US and all over the world.
An advert for BriansClub has been utilizing my title and likeness for years to hawk thousands and thousands of stolen bank cards.
In 2019, somebody hacked BriansClub and relieved the fraud store of greater than 26 million stolen fee playing cards — an estimated one-third of the 87 million fee card accounts that have been on sale throughout all underground retailers at the moment. An nameless supply shared that card knowledge with KrebsOnSecurity, which finally shared it with a consortium of economic establishments that issued a lot of the playing cards.
After that incident, the administrator of BriansClub modified the positioning’s login web page in order that it featured a duplicate of my telephone invoice, Social Safety card, and a hyperlink to my full credit score report [to this day, random cybercriminals confuse Yours Truly with the proprietor of BriansClub].
Alex Holden is founding father of the Milwaukee-based cybersecurity agency Maintain Safety. Holden has lengthy maintained visibility into cryptocurrency transactions made by BriansClub.
Holden mentioned these data present BriansClub sells tens of 1000’s of {dollars} price of stolen bank cards day-after-day, and that within the final two years alone the BriansClub administrator has eliminated greater than $242 million price of cryptocurrency income from the UAPS platform.
The BriansClub login web page, because it regarded from late 2019 till just lately.
Passive area title system (DNS) data present that in its early days BriansClub shared a server in Lithuania together with only a handful of different domains, together with safe.pinpays[.]com, the crime discussion board Verified, and a slew of carding retailers working below the banner Rescator.
As KrebsOnSecurity detailed in December 2023, the Rescator retailers have been straight concerned in a few of the largest fee card breaches of the previous decade. These embrace the 2013 breach at Goal and the 2014 breach at House Depot, intrusions that uncovered greater than 100 million fee card data.
CRYPTEX
In early 2018, Taleon and the proprietors of UAPS launched a cryptocurrency alternate referred to as Cryptex[.]web that has emerged as a significant mover of ill-gotten crypto cash.
Taleon reminds UAPS clients they’ll get pleasure from 0% fee and no “know your buyer” (KYC) necessities “on our alternate Cryptex.”
Cryptex has been related to fairly a couple of ransomware transactions, together with the most important recognized ransomware fee up to now. In February 2024, a Fortune 50 ransomware sufferer paid a file $75 million ransom to a Russian cybercrime group that calls themselves the Darkish Angels. A supply with information of the investigation mentioned an evaluation of that fee reveals roughly half of it was processed via Cryptex.
That supply offered a display shot of Cryptex’s sending and receiving publicity as seen by Chainalysis, an organization the U.S. authorities and lots of cryptocurrency exchanges depend on to flag transactions related to suspected cash laundering, ransomware payouts, or facilitating funds for darknet web sites.
Chainalysis finds that Cryptex has acquired greater than $1.6 billion since its inception, and that this quantity is roughly equal to its sending publicity (though the whole variety of outflows is almost half of the inflows).
The graphic signifies an excessive amount of cash flowing into Cryptex — roughly 1 / 4 of it — is coming from bitcoin ATMs all over the world. Consultants say most of these ATM inflows to Cryptex are bitcoin ATM money deposits from clients of carding web sites like BriansClub and Jokers Stash.
A screenshot of Chainalysis’s abstract of illicit exercise on Cryptex because the alternate’s inception in 2018.
The indictments launched right this moment don’t definitively join Taleon to Cryptex. Nevertheless, PM2BTC (which teamed up with Taleon to launch UAPS and Pinpays) and Cryptex have now been sanctioned by the U.S. Division of the Treasury.
Treasury’s Monetary Crimes Enforcement Community (FinCEN) levied sanctions right this moment towards PM2BTC below a strong new “Part 9714” authority included within the Combating Russian Cash Laundering Act, adjustments enacted in 2022 to make it simpler to focus on monetary entities concerned in laundering cash for Russia.
Treasury first used this authority final yr towards Bitzlato, a cryptocurrency alternate working in Russia that turned a cash laundering conduit for ransomware attackers and darkish market sellers.
THE LAUNDROMAT
An investigation into the company entities behind UAPS and Cryptex reveals a corporation included in 2012 in Scotland referred to as Orbest Investments LP. Information from the UK’s enterprise registry present the homeowners of Orbest Investments are two entities: CS Proxy Options CY, and RM Everton Ltd.
Public enterprise data additional reveal that CS Proxy Options and RM Everton are co-owners of Progate Options, a holding firm that featured prominently in a June 2017 report from Bellingcat and Transparency Worldwide (PDF) on cash laundering networks tied to the Kremlin.
“Regulation enforcement businesses imagine that the whole quantity laundered via this course of could possibly be as excessive as US$80 billion,” the joint report reads. “Though it’s not clear the place all of this cash got here from, investigators declare it consists of important quantities of cash that have been diverted from the Russian treasury and state contracts.”
Their story constructed on reporting printed earlier that yr by the Organized Crime and Corruption Mission (OCCRP) and Novaya Gazeta, which discovered that at the least US$20.8 billion was secretly moved out of Russia between 2010 and 2014 via an unlimited cash laundering machine comprising over 5,000 authorized entities generally known as “The Laundromat.”
Picture: occrp.org
“Utilizing firm data, reporters tracked the names of some shoppers after executives refused to offer them out,” the OCCRP report explains. “They discovered the heavy customers of the scheme have been wealthy and highly effective Russians who had made their fortunes from coping with the Russian state.”
Wealthy Sanders is a blockchain analyst and investigator who advises the regulation enforcement and intelligence group. Sanders simply returned from a three-week sojourn via Ukraine, touring with Ukrainian troopers whereas mapping out dodgy Russian crypto exchanges which are laundering cash for narcotics networks working within the area. Sanders mentioned right this moment’s sanctions by the Treasury Division will doubtless have a right away affect on Cryptex and its clients.
“At any time when an entity is sanctioned, the implications on-chain are immense,” Sanders informed KrebsOnSecurity. “No matter whether or not an alternate is definitely compliant or simply advantage alerts it, it’s the case throughout the board that exchanges will take note of these sanctions.”
“This motion reveals these fee processors for illicit platforms will get consideration finally,” Sanders continued. “Even when it took approach too lengthy on this case, Cryptex knew the vast majority of their quantity was problematic, knew why it was problematic, and did it anyway. And this needs to be a get up name for different exchanges that know full nicely that almost all of their quantity is problematic.”
The U.S. Division of State is providing a reward of as much as $10 million every for info resulting in the arrests and/or convictions of Shakhmametov and Ivanov. The State announcement says separate rewards of as much as $1 million every are being provided for info resulting in the identification of different leaders of the Joker’s Stash felony market (aside from Shakhmametov), in addition to the identification of different key leaders of the UAPS, PM2BTC, and PinPays transnational felony teams (aside from Ivanov).
Picture: U.S. Secret Service.
