Bitcoin Addresses Linked to Two Criminals by U.S. Department of Treasury: Exchanges Face Potential "Secondary Sanctions"

In a press release today, the U.S. Department of the Treasury's Office of Foreign Assets Control took action against two Iranian-based criminals who were using Bitcoin to transfer-and seemingly launder-ransom-related funds.

As a result of today's actions, people who have engaged with these two addresses, and who may have consequently assisted these criminals, "Could be subject to secondary sanctions," according to the Treasury.

The scandal related to these Bitcoin addresses starts with a malicious computer virus.

Ali Khorashadizadeh and Mohammad Ghorbaniyan are two Iranians who helped these cybercriminals exchange Bitcoin into Iranian rials-Bitcoin which was received from ransoms.

Due to the decentralized nature of Bitcoin, criminals can use cryptocurrencies to obscure the source of funds and circumvent international transfer controls.

149w62rY42aZBox8fGcmqNsXUzSStKeq8C and 1AjZPMsnmpdK2Rv9KQNfMurTXinscVro9V. According to OFAC, 7,000 transactions with over 40 exchangers, including U.S. based exchanges, were able to convert and send roughly 6,000 Bitcoin through these addresses.

The Treasury stated that some of these Bitcoin were derived from the SamSam ransomware.

This historic action is the first time OFAC has publicly attributed Bitcoin addresses to specific individuals.

"We are publishing digital currency addresses to identify illicit actors operating in the digital currency space."

"Like traditional identifiers, these digital currency addresses should assist those in compliance and digital currency communities in identifying transactions and funds that must be blocked and investigating any connections to these addresses," as stated in the report.