US Treasury Identifies 13 Russian Firms Utilizing Crypto to Evade Sanctions

Publish on 26 March 2024

The United States Treasury Department has taken action by sanctioning 13 business entities and two individuals for their involvement in Russian operations that aid in the evasion of sanctions through the use of digital assets. This move, announced in a recent press release by the Department of Treasury's Office of Foreign Asset Control (OFAC), targets entities and individuals in the Russian financial and technology sector, with many of them allegedly facilitating the movement of assets for OFAC-designated persons to evade sanctions.

According to the press release, five of the listed firms are either wholly owned or have their operations controlled by OFAC-designated entities. Brian E. Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized that Russia is seeking alternative financial sources to evade US sanctions, and the Treasury will continue to expose and disrupt companies aiding sanctioned Russian financial institutions.

The United States has been imposing sanctions on Russian financial companies to prevent further funding of its war against Ukraine. The use of crypto assets to circumvent global sanctions and finance certain activities has been a concern for global regulators. The entities listed by OFAC allegedly helped build or operate blockchain-based services or enabled virtual currency payments in the Russian financial sector, facilitating potential sanctions evasion.

As a result of the sanctions, the assets of the sanctioned companies in the United States are blocked, and transactions involving these properties must be reported to OFAC and are subject to approval. These sanctions are part of the broader effort by the US to target companies involved in facilitating fund transfers through digital assets, particularly in the context of the conflict between Russia and Ukraine.

In a related development, Binance, the world's largest cryptocurrency exchange by volume, faced regulatory issues last year leading to its withdrawal from the Russian market. Its Russian entity was subsequently taken over by CommEx, which has announced the closure of its website by May 10th.

Previous Post
South Dakota Governor Vetoes Bill Excluding Bitcoi...
Next Post
Binance Stops Accepting New Users in UK to Comply...

Related News

New Stablecoin Issuer PayPal Welcomes New CEO

American multinational payments firm PayPal has ap...