Chatex (OFAC Sanctioned)

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Chatex (OFAC-sanctioned)

Chatex was a virtual currency exchange / peer-to-peer (P2P) crypto service (reported to operate notably via a Telegram-based chatbot) that was sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) for its role in facilitating illicit cryptocurrency transactions, including those connected to ransomware. (home.treasury.gov)

OFAC designation (sanctions)

On November 8, 2021, OFAC designated Chatex under Executive Order (E.O.) 13694, as amended (a cyber-related sanctions authority). OFAC stated that Chatex facilitated financial transactions for multiple ransomware variants and that analysis of its transactions indicated over half were connected to illicit or high-risk activity (e.g., ransomware, darknet markets, and high-risk exchanges). (home.treasury.gov)

Relationship to Suex (a previously sanctioned exchange)

OFAC described Chatex as having direct ties to SUEX OTC, S.R.O. (Suex)—a virtual currency exchange sanctioned on September 21, 2021—including by using Suex as a “nested exchange” to conduct transactions. Chatex was designated for providing material support to Suex and to the broader ransomware threat. (home.treasury.gov)

Associated entities also designated

In the same November 2021 action, OFAC also designated three entities it identified as providing material support / infrastructure enabling Chatex’s operations:

• IZIBITS OU
• Chatextech SIA
• Hightrade Finance Ltd (home.treasury.gov)

Practical effect of the sanctions (high level)

As an OFAC-designated party, Chatex became subject to blocking sanctions under U.S. law—generally meaning U.S. persons are prohibited from dealing with it, and any property/interests in property within U.S. jurisdiction are blocked (frozen), absent authorization. (home.treasury.gov)

Later U.S. Treasury references

U.S. Treasury has continued to cite Chatex as one of several sanctioned cryptocurrency exchanges that have facilitated illicit activity since at least 2021. (home.treasury.gov)