WASHINGTON, DC, Monday, April 01, 2024 – The US Department of Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions on March 25 against 13 entities and two individuals linked to Russia for facilitating the evasion of U.S. sanctions through cryptocurrency. 1
According to a statement from OFAC, these individuals and entities operate within Russia’s financial services and technology sectors and play a role in “transactions or providing services aimed at aiding other designated entities in circumventing sanctions.”
The sanctions target a variety of entities, including Moscow-based fintech firms like B-Crypto, Masterchain, Atomaiz, Veb3 Tekhnologii, and Veb3 Integrator. Notably, Atomaiz, controlled by Russian billionaire Vladimir Potanin’s Interros Holding investment group, received Russia’s first government license to issue and exchange digital financial assets in February 2022, just weeks before the invasion of Ukraine.
The Treasury Department also designated Tokentrust, a Cyprus-based company with majority ownership of Atomaiz.
“Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue to fund its war against Ukraine,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson.
“As the Kremlin seeks to leverage entities in the financial technology space, Treasury will continue to expose and disrupt the companies that seek to help sanctioned Russian financial institutions reconnect to the global financial system.”
OFAC’s press release specifically highlighted Netex24 and Bitpapa, two cryptocurrency service providers suspected of facilitating transactions for sanctioned Russian banks, darknet markets, and pro-Russian militia groups. Blockchain intelligence firm Chainalysis identified “clusters linked to both services” and a significant increase in transfers to sanctioned entities and darknet markets since the war began.
The sanctions aim to disrupt Russia’s ability to circumvent U.S. sanctions using cryptocurrency and further isolate sanctioned Russian financial institutions.
- US Sanctions: https://home.treasury.gov/news/press-releases/jy2204[↩]
