The US Treasury has filed serious charges against the popular cryptocurrency exchange Swix, stating that it will fine the latter for its alleged role in laundering the money of ransomware hackers.
Ransomware is a type of cyber attack where actors often block access to key programs and demand payment, usually in a digital currency such as Bitcoin, to unlock it.
The US Treasury said ransomware payments totaled more than $400 million in 2020 alone, more than four times what it was in 2019.< /p>
According to CNBC Arabia, the department's Office of Foreign Assets Control will sue cryptocurrency exchange Swix for allegedly playing a role in facilitating financial transactions for ransomware representatives.
While the Treasury Department has said that most virtual currency activity is legal, misuse can be avoided with disciplinary techniques.
The ministry said that in the case of Swix, the cryptocurrency exchange helped facilitate illegal activity for illicit gain.
The administration alleged that Swix facilitated transactions involving illicit proceeds from at least 8 hacking and ransomware exploiters.
It has also claimed that more than 40% of the company's known transaction history is associated with illicit actors.
The new designation means that it will be very difficult for Swix to deal with US entities.
US citizens are generally prohibited from engaging in transactions with sanctioned entities and financial institutions that engage in certain activities with them, and may themselves face sanctions or enforcement action.
