Vasily Zhabykin

Key Points

• Identity and Role: Vasily Borisovich Zhabykin is a Moscow-based fintech professional, known as a co-founder of SUEX, a cryptocurrency exchange sanctioned by the U.S. Treasury in 2021 for facilitating illicit transactions.
• Criminal Allegations: SUEX, co-founded by Zhabykin, is accused of processing over $480 million in unlawful transactions, including ransomware payments and money laundering linked to darknet markets like Hydra.
• Professional Background: Zhabykin has a strong educational background from the Moscow State Institute of International Relations (MGIMO) and is currently associated with CFA.CENTER, focusing on digital financial assets and blockchain.
• Sanctions and Fallout: The U.S. Treasury’s sanctions on SUEX led to Zhabykin’s dismissal from a managerial role at MTS Bank, highlighting significant reputational and legal consequences.
• Business Connections: Vasily Zhabykin has ties to other crypto entities like Chatex and individuals such as Egor Petukhovsky, with allegations of connections to Russian financial firms Exmo and Qiwi.
• Public Response: Zhabykin has denied involvement in illegal activities, claiming SUEX was a small operation with minimal transactions since 2019.

Overview

Vasily Borisovich Zhabykin is a Russian entrepreneur and fintech professional based in Moscow, with a notable presence in the cryptocurrency and digital finance sectors. Educated at the prestigious Moscow State Institute of International Relations (MGIMO),Vasily Zhabykin has positioned himself as a product director and mentor in fintech, blockchain, and digital transformation, as evidenced by his LinkedIn profile. He is currently associated with CFA.CENTER, a company focused on digital financial assets, and has been recognized as a Skolkovo Business School expert, suggesting a legitimate professional facade in Russia’s tech ecosystem.

Vasily Zhabykin gained significant attention as a co-founder of SUEX OTC s.r.o., a cryptocurrency exchange registered in the Czech Republic but operating primarily out of Russia, with offices in Moscow and St. Petersburg. SUEX was established in 2018 and facilitated cryptocurrency transactions, primarily in Bitcoin, Ethereum, and Tether. However, the exchange became infamous in 2021 when the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned it for enabling money laundering and ransomware-related transactions. These sanctions marked a pivotal moment in Zhabykin’s career, leading to his dismissal from a managerial role at MTS Bank and raising questions about his business practices and associations.

Beyond SUEX, Vasily Zhabykin has been linked to other ventures, including JSC Hot Spot and RideWithLocal, a UK-based company specializing in extreme sports excursions. His involvement in ChronoPay, a Russian e-payments company known for handling high-risk transactions, further complicates his profile, suggesting a pattern of engagement with controversial or high-risk financial entities.

Allegations and Concerns

The most serious allegations against Vasily Zhabykin stem from his role in SUEX, which was sanctioned by the U.S. Treasury in September 2021 for facilitating over $480 million in illicit transactions. Key concerns include:

• Money Laundering: SUEX is accused of processing transactions linked to illegal activities, with over 40% of its transactions allegedly tied to illicit actors. Blockchain intelligence firm TRM Labs reported that SUEX handled funds from notorious platforms like Hydra, a Russian darknet market with an estimated annual turnover of $1.5 billion, and Finiko, a crypto Ponzi scheme.
• Ransomware Facilitation: The U.S. Treasury alleged that SUEX facilitated transactions for at least eight ransomware attacks, contributing to the growing global cybercrime economy.
• Connections to Criminal Networks: Investigations by Russian anti-drug organization Stopnarkotik suggested SUEX’s ties to financial institutions like Exmo and Qiwi, raising concerns about broader involvement in Russia’s cybercrime ecosystem.
• ChronoPay Involvement: Vasily Zhabykin’s association with ChronoPay, a company linked to high-risk businesses such as gambling and rogue pharmaceuticals, ties him to a network of cybercriminals, including Pavel Vrublevsky, a convicted cybercriminal and ChronoPay’s CEO.
• Lack of Transparency: Zhabykin’s claim that SUEX was a small operation with only a few transactions since 2019 has been met with skepticism, given blockchain analyses showing significant transaction volumes.

These allegations paint a picture of Vasily Zhabykinas a key figure in a complex web of cyber-financial activities, potentially leveraging Russia’s lenient stance on cybercrime to operate with impunity.

Customer Feedback

Publicly available customer feedback on Vasily Zhabykin or SUEX is limited, primarily due to the nature of cryptocurrency exchanges and their often-anonymous user base. However, the following insights can be drawn from available sources:

• Negative Feedback: No direct consumer reviews of SUEX are widely available, but the U.S. Treasury’s sanctions and reports from blockchain analytics firms like Chainalysis and TRM Labs indicate significant distrust in SUEX’s operations. The sanctions imply that users, particularly those in the U.S., faced risks of engaging with a platform involved in illicit activities. A report noted, “SUEX’s 40% transactions were connected to illicit actors,” underscoring the platform’s questionable reliability.
• Positive Feedback: Zhabykin’s LinkedIn activity suggests some professional recognition within Russia’s fintech community. For instance, he highlighted receiving a Tagline award for NUUM and a FinAward2023 for a fintech startup, indicating some positive reception in legitimate business circles. However, these accolades are overshadowed by the sanctions and lack direct consumer endorsement.

The absence of widespread customer testimonials may reflect the opaque nature of SUEX’s operations, which catered to a niche market potentially including illicit actors, making traditional consumer feedback scarce.

Risk Considerations

Engaging with Vasily Zhabykin or his associated ventures presents several risks:

• Financial Risk: SUEX’s sanctions prohibit U.S. entities and individuals from transacting with the exchange, with potential penalties for non-compliance. This extends to any future ventures Zhabykin may undertake, given his history. Blockchain data indicating over $934 million in crypto transactions through SUEX addresses suggests significant exposure to illicit funds, posing risks for investors or partners.
• Reputational Risk: Zhabykin’s association with SUEX and ChronoPay, both linked to cybercrime, severely tarnishes his professional reputation. His dismissal from MTS Bank following the sanctions underscores the reputational fallout, which could impact any business or individual associated with him.
• Legal Risk: The U.S. Treasury’s sanctions and ongoing investigations by Russian authorities (prompted by Stopnarkotik) increase the likelihood of legal scrutiny. While Zhabykin remains in Russia, where extradition to the U.S. is unlikely, international partners face risks of secondary sanctions or legal action for engaging with him.
• Operational Risk: SUEX’s ties to ransomware and darknet markets suggest operational vulnerabilities, such as exposure to cyberattacks or regulatory crackdowns. Zhabykin’s other ventures, like CFA.CENTER, may face similar scrutiny if linked to illicit financial flows.

Business Relations and Associations

Zhabykin’s business network is intricate, with connections to both legitimate and controversial entities:

• SUEX OTC s.r.o.: Co-founded with Egor Petukhovsky, Ildar Zakirov, Maxim Subbotin, Maxim Kurbangaleev, and Czech venture capitalist Tibor Bokor. Petukhovsky is noted as the largest shareholder, while Zhabykin and Bokor served as executives. SUEX was linked to Izibits OU, an Estonian company operating Chatex, a Telegram-based crypto exchange.
• ChronoPay: Zhabykin was reportedly subordinate to Vera Vrublevsky, wife of ChronoPay’s CEO Pavel Vrublevsky, a convicted cybercriminal. ChronoPay’s involvement in high-risk transactions, including spam and rogue pharmaceuticals, ties Zhabykin to a broader cybercrime network.
• MTS Bank: Zhabykin held a managerial role at MTS Bank’s NUUM crypto bank until his dismissal following the SUEX sanctions, indicating a fallout from his controversial activities.
• CFA.CENTER: Zhabykin’s current venture, focused on digital financial assets, is a Skolkovo resident, suggesting some legitimacy within Russia’s tech ecosystem. However, its ties to Zhabykin’s past raise concerns.
• Other Ventures: Zhabykin is linked to JSC Hot Spot (co-founded with Mikhail Shefel, another ChronoPay employee) and RideWithLocal, a UK-based extreme sports company, indicating a diverse but opaque portfolio.

Legal and Financial Concerns

• U.S. Treasury Sanctions (2021): SUEX was sanctioned for facilitating over $480 million in illicit transactions, including ransomware and money laundering. This led to asset freezes in the U.S. and a ban on transactions with SUEX, impacting Zhabykin’s financial standing.
• Dismissal from MTS Bank: Following the sanctions, Zhabykin was fired from his role at MTS Bank, reflecting financial and professional repercussions.
• Russian Investigations: Stopnarkotik urged Russia’s Ministry of Interior and Central Bank to investigate SUEX’s ties to Exmo, Qiwi, and Hydra, though no public outcomes have been reported.
• No Bankruptcy Records: There are no public records of personal bankruptcy for Zhabykin, but SUEX’s sanctions effectively crippled its operations, rendering it a financial liability.
• Unresolved Allegations: Zhabykin has not faced direct criminal charges, but his denial of SUEX’s illicit activities and lack of response to victim complaints (as noted by Gripeo) suggest ongoing legal vulnerabilities.

Risk Assessment Table

Expert Opinion

Vasily Zhabykin presents a complex case of a professional operating at the intersection of legitimate fintech and illicit cyber activities. His educational credentials and current role at CFA.CENTER suggest an attempt to maintain a reputable facade, but his history with SUEX and ChronoPay raises significant red flags. The U.S. Treasury’s sanctions on SUEX, supported by blockchain analyses from TRM Labs and Chainalysis, provide compelling evidence of Zhabykin’s involvement in facilitating cybercrime, particularly money laundering and ransomware. His denial of SUEX’s illicit activities, coupled with the claim of minimal transactions, lacks credibility given the scale of reported transactions (over $934 million).

Pros:

• Strong academic background (MGIMO) and expertise in fintech and blockchain.
• Recognition in Russia’s tech ecosystem (Skolkovo residency, awards).
• Diverse business ventures indicate entrepreneurial versatility.

Cons:

• Direct link to SUEX, a sanctioned entity tied to serious cybercrimes.
• Association with ChronoPay and other high-risk entities undermines credibility.
• Lack of transparency and failure to address victim complaints amplify distrust.

Cautionary Advice: Engaging with Zhabykin or his ventures requires extreme caution. Investors, partners, or customers should conduct thorough due diligence, particularly regarding compliance with international sanctions. His current projects, like CFA.CENTER, may appear legitimate, but their ties to his past warrant scrutiny. Businesses should avoid transactions that could violate U.S. sanctions and verify the legitimacy of any crypto-related ventures associated with Zhabykin. Monitoring ongoing investigations by Russian authorities and blockchain analytics firms is advisable.

Key Citations

• U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC), Sanctions on SUEX, September 2021
• Krebs on Security, “Ten Years Later, New Clues in the Target Breach,” December 14, 2023
• Gripeo, “Vasily Zhabykin – Lawsuit of SUEX, Fraud & Money Laundering Cases. Disclosed! (Update 2024),” November 30, 2023
• The Cryptonomist, “Moscow: co-founder of crypto exchange Suex fired,” September 27, 2021
• LinkedIn Profile of Vasily Zhabykin
• bne IntelliNews, “In a first, US sanctions Russian crypto exchange linked to ransomware,” September 23, 2021