Biden administration sanctions virtual currency exchange following spike in ransomware attacks
CBSN
The White House imposed sanctions Tuesday against SUEX, a virtual currency exchange that enables users to trade cryptocurrency or other digital currencies, for its role in facilitating financial transactions for ransomware actors. Spearheaded by the Treasury Department's Office of Foreign Assets Controls (OFAC), the new commercial and financial penalties against SUEX are intended to punish the platform "for its part in facilitating financial transactions for ransomware actors, involving illicit proceeds from at least eight ransomware variants," according to Deputy Treasury Secretary Wally Adeyemo.
Tuesday's announcement marks the first time OFAC has punished a virtual exchange for complicity in criminal ransomware activity. An analysis of known SUEX activity has shown that over 40% of transactions were associated with illicit actors, the Department of Treasury says.
"We recognize that the vast majority of activity that's happening in the virtual currencies is legitimate activity," Adeyemo told reporters during a briefing. "But we also do know that these criminals are using some of these exchanges and mixers, and peer to peer services to conduct illicit activity that is not in our national interest."
