The US government steps up its effort to nab criminals in the crypto sector

Two Russian nationals, Dmitrii Karasavidi and Danil Potekhin, face sanctions from the Department of Justice, Department of Homeland Security, and Treasury's Office of Foreign Assets Control. Between 2017 and 2018, they stole more than $16.8 million from customers at three cryptocurrency exchanges. They created fraudulent websites designed to mimic legitimate exchanges and harvested login credentials from unsuspecting targets. Using those credentials along with stolen identities, they accessed victim accounts and transferred the cryptocurrency through a series of intermediaries. The pair also manipulated prices in low-volume altcoins, purchasing coins before artificially inflating their value and then selling for profit. Two of the three targeted exchanges were based in the United States.

Treasury Secretary Steven Mnuchin released a statement: "The individuals who administered this scheme defrauded American citizens, businesses, and others by deceiving them and stealing virtual currency from their accounts. The Treasury Department will continue to use our authorities to target cyber criminals and remains committed to the safe and secure use of emerging technologies in the financial sector."

Malaysian police arrested two hackers in connection with a separate investigation. The duo targeted more than 100 institutions across education, government, and the corporate sector worldwide. Five Chinese nationals alleged to be part of the same operation remain at large, with one reportedly connected to China's Ministry of State Security. The group gained unauthorized access to computer systems to obtain confidential information.

FBI Deputy Director David Bowdich commented on the enforcement efforts: "Today's announcement demonstrates the ramifications faced by the hackers in China but it is also a reminder to those who continue to deploy malicious cyber tactics that we will utilise every tool we have to administer justice."