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US, UK, and Australia Sanction Zservers for Hosting LockBit Ransomware
The United States, the United Kingdom, and Australia have taken a decisive step in combating cybercrime by imposing sanctions on Russia-based web hosting provider Zservers. The company has been accused of supporting the notorious LockBit ransomware gang, enabling them to carry out devastating attacks on individuals and key infrastructure worldwide.
Authorities claim that Zservers provided bulletproof hosting services, allowing hackers to operate anonymously. This made it challenging for law enforcement agencies to track criminal activity and prevent cyberattacks. By targeting Zservers and similar infrastructure providers, authorities aim to disrupt the operations of ransomware groups like LockBit and make them more vulnerable to detection and prosecution.
The sanctions come after a global law enforcement operation in February 2024 attempted to dismantle LockBit’s network. The group has been responsible for over 7,000 cyberattacks since its inception in September 2019, resulting in an estimated $1 billion in damages.
LockBit is notorious for using ransomware, a type of malicious software that encrypts files on victims’ computers and demands payment in cryptocurrency to restore access. The sanctions are aimed at cutting off LockBit’s financial lifeline by restricting Zservers’ ability to access funds and conduct transactions.
The US Treasury’s Office of Foreign Assets Control (OFAC) has also added several cryptocurrency addresses linked to Zservers to its Specially Designated Nationals (SDN) list. This means that these addresses are now blocked from making legal transactions.
Blockchain analytics firm Chainalysis discovered that Zservers was not only used by LockBit but also served other ransomware operators. Investigations revealed that cybercriminals frequently sent payments to Zservers, utilizing the company’s services for illicit activities. Furthermore, Zservers cashed out funds through Garantex, a Russian cryptocurrency exchange that does not enforce Know Your Customer (KYC) verification rules.
This allows for anonymous transactions and facilitates money laundering, making it easier for criminals to conceal their identities and hide the source of their funds. Chainalysis estimated that Zservers had handled at least $5.2 million in cryptocurrency transactions linked to high-risk and illegal activities.
The sanctions come as a significant blow to LockBit’s operations and its ability to conduct financial transactions. By targeting critical infrastructure providers like Zservers, authorities hope to create an environment where cybercriminals are less likely to operate with impunity.
Zservers’ official website lists data centers in multiple countries, including the United States, Russia, Bulgaria, the Netherlands, and Finland. The company offers various hosting services, including custom configurations and technical support.
Source: coinchapter.com
