Zservers Sanctioned: The US, UK, and Australia Crack Down on Crypto Ransomware Hosting

In a significant move against cybercrime, the United States, United Kingdom, and Australia have jointly sanctioned the Russian hosting service known as Zservers. This action aims to curb the activities of the notorious LockBit ransomware gang, a group responsible for numerous high-profile cyberattacks.

According to a press release issued on February 11, 2025, by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), along with Australia’s Department of Foreign Affairs and Trade and the UK’s Foreign, Commonwealth & Development Office, Zservers has been identified as a critical player in facilitating the operations of cybercriminal gangs. These sanctions include asset freezes, travel bans, and restrictions preventing Zservers from accessing the global financial system.

Bulletproof Hosting Services

  • Definition: Bulletproof hosting services are designed to protect cybercriminals by concealing their identities and online activities.
  • Key Figures: The sanctions specifically target Zservers’ administrators, Alexander Igorevich Mishin and Aleksandr Sergeyevich Bolshakov, along with four additional individuals associated with LockBit’s operations.
  • Impact: This means any funds or properties linked to Zservers within sanctioned jurisdictions are frozen, and financial institutions that engage with them face penalties.

In addition to assisting LockBit, Zservers catered to a wide array of cybercriminal clients. According to Chainalysis, a blockchain analytics firm, at least $5.2 million in cryptocurrency activities have been traced back to Zservers. This includes transactions funneled through high-risk exchanges such as Garantex, known for minimal Know Your Customer (KYC) enforcement.

Moreover, the U.S. Department of Justice has previously charged a Russian national in December 2024 for his involvement as a developer for the LockBit group. This crackdown on Zservers symbolizes a broader effort to dismantle the infrastructures that sustain ransomware operations, which threaten both U.S. and international critical infrastructure.

As noted by Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, these actions are crucial to neutralizing the capabilities of bad actors leveraging hosting services like Zservers to orchestrate devastating ransomware attacks, impacting various sectors worldwide.

Ultimately, these measures mark a pivotal step in the global fight against cybersecurity threats, as authorities continue to collaborate to expose and eliminate the environments that foster such activities.

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