The Office of Foreign Assets Control (OFAC), a financial agency under the U.S. Treasury Department, has recently sanctioned several crypto wallets linked to the cybercriminal group LockBit. The action comes on the heels of several government agencies’ efforts to curb the activities of LockBit.
LockBit is a cybercriminal group that promotes Ransomware-as-a-Service (RaaS), a cybercrime where ransomware operators sell ransomware codes to hackers (affiliates). Ransomware in itself involves maliciously blocking users from accessing their devices. Users gain access to their devices only after paying a demanded ransom. LockBit is believed to be a Russian platform, as it was first observed among Russian cybercriminal platforms.
OFAC Sanctions LockBit-Affiliated Accounts
OFAC explained in a press release that the confiscated ten crypto wallets belonged to two Russian nationals, Ivan Gennadievich Kondratiev and Artur Sungatov. These two were labelled as LockBit affiliates. Other imposed penalties include seizing any U.S.-based property owned by the duo.
OFAC and the Treasury Department have a history of sanctioning crypto wallets. In September 2021, the government agency cracked down on a crypto exchange that facilitated ransomware activities.
Commenting on the latest crackdown, Deputy Treasury Secretary Wally Adeyemo said:
“The United States will not tolerate attempts to extort and steal from our citizens and institutions. We will continue our whole-of-government approach to defend against malicious cyber activities, and will use all available tools to hold the actors that enable these threats accountable.”
Global Efforts to Crackdown LockBit
LockBit’s malicious activities have spread across several parts of the world, causing more victims to part ways with their money. According to the U.S. Department of Justice, the RaaS group has made more than $120 million from over 2,000 victims.
Being a global cybersecurity threat, several countries have come together to cripple LockBit’s activities. These include the U.K. National Crime Agency’s (NCA) Cyber Division, the Federal Bureau of Investigation (FBI), and other agencies.
Europol noted that government authorities from different countries have confiscated 200 crypto wallets tied to the LockBit group and its affiliates.
