US Slaps Sanctions on Russian Fintechs, Individuals for Sanctions Evasion

The US Treasury has imposed new sanctions on 13 fintech companies and two individuals associated with Russia, alleging their involvement in developing and providing virtual asset services used to circumvent sanctions. These entities facilitated illicit crypto transactions that aided Russia's war efforts in Ukraine, highlighting the growing reliance on cryptocurrencies to evade sanctions and fund illicit activities.

United States Imposes Sanctions on Russian Fintech Firms and Individuals for Circumventing Sanctions

Washington, D.C. - In a move to further isolate Russia and disrupt its war efforts in Ukraine, the United States Treasury Department has announced a new round of sanctions against 13 fintech firms and two individuals with ties to Russia. The sanctions are aimed at disrupting virtual asset services that have been utilized to circumvent international sanctions imposed in response to Russia's invasion of Ukraine.

"Russia is increasingly relying on alternative payment mechanisms to evade U.S. sanctions and continue funding its war against Ukraine," said Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence.

The sanctions were administered by the Treasury Department's Office of Foreign Assets Control (OFAC) and target companies and individuals believed to have facilitated the development or provision of virtual asset services that have aided sanctioned Russian financial institutions in reconnecting to the global financial system.

Among the companies sanctioned are Moscow-based fintechs B-Crypto, Masterchain, Atomaiz, Veb3 Tekhnologii, and Veb3 Integrator, as well as Cyprus-based Tokentrust, which holds a majority stake in Atomaiz.

Two individuals, Igor Veniaminovich Kaigorodov and Timur Evgenyevich Bukanov, were also included in the sanctions list. Kaigorodov is the majority owner of Veb3 Tekhnologii and Veb3 Integrator, while Bukanov is the owner of TOEP.

The United States has been closely monitoring the use of virtual assets, such as cryptocurrencies, in Russia since the start of the Ukraine war. Cryptocurrencies offer an alternative and potentially anonymous means of cross-border payments, making them attractive to sanctioned entities seeking to evade financial restrictions.

According to a report published by blockchain intelligence firm TRM Labs, exchanges linked to Russia and Ukraine accounted for more than half of all international volumes in illicit crypto funds before the start of the war.

A separate report from Chainalysis revealed that in 2022, the year the Ukraine war broke out, the proportion of crypto activity associated with illegal operations doubled to 0.24% from 0.12% in 2021.

"The Treasury will continue to expose and disrupt the companies that seek to help sanctioned Russian financial institutions reconnect to the global financial system," Nelson подчеркнул.