VILNIUS, Lithuania, Saturday, July 20, 2024 – Lithuania has imposed its largest-ever fine on a cryptocurrency company for violating international sanctions. The company, identified as Vilniaus Crypto, was fined 3 million euros ($3.3 million) for conducting transactions with entities linked to sanctioned regimes, authorities said Monday.
The Lithuanian government statement can be read here.
The State Security Department (VSD) and the Financial Crime Investigation Service (FNTT) launched an investigation after detecting suspicious activity involving Vilniaus Crypto. According to the agencies, the firm facilitated several transactions with entities in North Korea and Iran, both subject to stringent international sanctions.
The fine marks a significant step in Lithuania’s efforts to crack down on financial crimes in the burgeoning crypto sector. The authorities have been increasingly vigilant about ensuring compliance with international regulations as the country aims to position itself as a hub for fintech innovation.
Vilniaus Crypto has denied any wrongdoing, claiming that it had implemented robust compliance measures. The company stated it would appeal the decision, arguing that the transactions in question were legitimate and did not violate any sanctions.
The Lithuanian government has been working to balance the promotion of the cryptocurrency industry with stringent regulatory oversight. This record fine underscores the country’s zero-tolerance approach to violations and its commitment to upholding international financial norms.
Reports indicate that further investigations into other cryptocurrency firms are ongoing as part of a broader strategy to safeguard the financial system from illicit activities.
