Argentinian Authorities Arrest Russian National for Laundering the Crypto Proceeds of Illicit Activity

This week, authorities from the Argentine Federal Police (PFA) arrested a Russian national for money laundering and seized millions of dollars in assets from his Argentinian-based operation. The San Isidro Specialized Fiscal Unit in Cybercrime Investigations (UFEIC) identified the subject and led the investigation. 

TRM Labs is proud to collaborate with UFEIC in its continued effort to discover and disrupt the illicit use of crypto in Argentina. 

UFEIC lead prosecutors Alejandro Musso and Denis Banchero were able to analyze and explain the complicated web of transactions and Adrian Acosta of the PFA (Technologic Cybercrime Department) was able to follow several different assets and across multiple blockchains. According to one report, the subject was essentially operating a financial institution within his apartment in Argentina.

The subject accepted illicit cryptocurrency proceeds from illicit actors such as North Korea’s Lazarus Group, child sexual abuse vendors and terrorist financiers. The subject would then exchange the illicit crypto for laundered, clean cryptocurrency and fiat currency. 

Prosecutor Musso brought the case before Judge Yadarola, who approved the arrest and seizure based on blockchain intelligence writing:

“Through the tools provided by the private cryptocurrency mapping company TRM Labs, it was learned that [the subject] would have received other suspicious transfers from accounts that would be linked to holders who would operate with sexual material for child abuse, as well as terrorist financing.”

The PFA seized over $120,000 worth of cryptocurrency during the arrest and another $15,000,000 from other properties the subject controlled. 

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