London, UK, Wednesday, March 20, 2024 – An analysis of cryptocurrency transactions revealed a transfer of $4.2 million worth of assets from UK-based crypto firm Copper Technologies to a digital wallet linked to Jonatan Zimenkov, a Russian national who the United States later sanctioned for his alleged involvement in arms dealing, according to a report by the International Consortium of Investigative Journalists (ICIJ) published on March 11. 1
A company spokesperson emphasized Copper’s commitment to adhering to its compliance, legal, and regulatory responsibilities, asserting that it has consistently operated in accordance with all relevant regulatory norms, including adherence to UK sanctions regulations. 2
According to The Guardian and ICIJ, it is understood that Zimenkov was not a client of Copper, relieving the company of any regulatory obligation to verify his identity.
However, the company declined to provide details regarding its association with Zimenkov when asked specific questions by the Guardian.
The reasons for the transfer and the relationship between the firm and Zimenkov remain unclear.
US authorities imposed sanctions on Zimenkov in February 2024, citing his role in supplying weapons to separatists in eastern Ukraine. 3
“Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed full blocking sanctions against 22 individuals and entities across multiple countries related to a sanctions evasion network supporting Russia’s military-industrial complex. Over the last year, Treasury has sanctioned over 100 individuals and entities engaging in activity to circumvent international sanctions and export controls imposed on Russia,” the press release said.
The sanctions freeze any assets Zimenkov holds within US jurisdiction and prohibit American companies from doing business with him.
Copper Technologies is a cryptocurrency custody firm that provides a secure infrastructure for the institutional digital asset investment community.
- Crypto: https://www.icij.org/investigations/russia-archive/crypto-firm-moved-4-2m-of-assets-to-digital-wallet-linked-to-alleged-russian-arms-dealer/[↩]
- Crypto: https://www.theguardian.com/technology/2024/mar/11/crypto-firm-assets-alleged-russian-arms-dealer[↩]
- Crypto: https://home.treasury.gov/news/press-releases/jy1241[↩]
