The Department of the Treasury’s Office of Foreign Assets Control’s (OFAC) today designated virtual currency exchange SUEX OTC, S.R.O. for its part in facilitating financial transactions for ransomware actors.
According to the US Treasury, SUEX has facilitated transactions involving illicit proceeds from at least eight ransomware variants. Analysis of known SUEX transactions shows that over 40% of SUEX’s known transaction history is associated with illicit actors. SUEX is being designated pursuant to Executive Order 13694, as amended, for providing material support to the threat posed by criminal ransomware actors.
Virtual currency exchanges such as SUEX are critical to the profitability of ransomware attacks, which help fund additional cybercriminal activity. The US Treasury says it will continue to disrupt and hold accountable these entities to reduce the incentive for cybercriminals to continue to conduct these attacks.
This action is the first sanctions designation against a virtual currency exchange and was executed with assistance from the Federal Bureau of Investigation.
As a result of today’s designation, all property and interests in property of the designated target that are subject to U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from engaging in transactions with them. Additionally, any entities 50% or more owned by one or more designated persons are also blocked.
In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. Today’s action against SUEX does not implicate a sanctions nexus to any particular Ransomware-as-a-Service (RaaS) or variant.