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US Treasury
Yesterday, the US Department of the Treasury’s Office of Foreign Assets Control said that it has sanctioned the Hydra Market, a Russian “darknet” operation, in a move designed to break up “malicious cybercrime services, dangerous drugs, and other illegal offerings.” 

The action came as Western and other select governments continued to squeeze Russia for its invasion of Ukraine in February. Part of the action involves stopping Russia from sidestepping financial sanctions by using cryptocurrencies and other methods. Russia has been ejected from the SWIFT global banking network.

The operation targeting Hydra was a collaborative initiative joined by the US Department of Justice, Federal Bureau of Investigations, Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and Homeland Security Investigations. The US authorities also worked with the German Federal Criminal Police, who shut down Hydra servers in Germany today and seized $25 million worth of bitcoin.

“The global threat of cybercrime and ransomware that originates in Russia, and the ability of criminal leaders to operate there with impunity, is deeply concerning to the United States,” Secretary of the Treasury Janet Yellen said. “Our actions send a message today to criminals that you cannot hide on the darknet or their forums, and you cannot hide in Russia or anywhere else in the world. In coordination with allies and partners, like Germany and Estonia, we will continue to disrupt these networks.”

Darknets are internet-based networks where individuals use special software to hide their identity and activity on the net. Marketplaces that reside on the darknet almost always accept virtual currency such as bitcoin as payment for illegal services and goods, including ransomware-as-a-service.

“Russia is a haven for cybercriminals,” the Treasury said.

The actions build on sanctions against virtual currency exchanges SUEX and CHATEX, both of which, like Garantex, operated from Federation Tower in Moscow, Russia. 

“Wanton disregard for regulations and compliance by persons that run virtual currency exchanges will be rigorously investigated and, where appropriate, perpetrators will be held accountable," the US Treasury said.

See here for a previous story on the Treasury's actions against Russia.