US Treasury Flags 13 Russian Firms For Crypto Use To Evade Sanctions
Highlights
- The United States Treasury has imposed sanctions on 13 firms.
- The Department alleges the use of crypto to bypass sanctions.
- Global authorities ramp up efforts to regulate the market.
The United States Treasury Department has sanctioned 13 business entities and two individuals for Russian operations which involve aiding sanction evasion through the use of digital assets.
In a recent press release, the Department of Treasury’s Office of Foreign Asset Control flagged the activities of certain companies and individuals in the Russian financial and technology sector. According to the statement, the majority of firms listed facilitated that movement of assets or helped OFAC-designated persons evade sanctions.
Crypto Firms Aid Russian Finance
The body revealed that five firms are wholly owned it have their operations controlled by OFAC-designated entities. Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson explained that Russia is pivoting to other financial sources to evade United States sanctions.
“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.”
This move comes as the United States seeks to target Russian financial companies with sanctions to prevent more funds in its war against Ukraine. Over the years, global regulators have lamented the use of crypto assets to circumvent global sanctions and fund certain activities.
The listed entities include Joint Stock Company B Crypto, Masterchain, Laitkhaus, Atomaiz, Token Trust Holdings, TOEP, etc.
“The companies designated by OFAC today have all either helped build or operate blockchain-based services for or enabled virtual currency payments in, the Russian financial sector, thus enabling potential sanctions evasion,” the statement added.
US Heaps Sanctions
Pursuant to the above, the company’s assets in the United States or control of US persons are blocked. Furthermore, these assets must be reported to OFAC. All transactions involving those properties in the United States are also blocked unless approved by OFAC.
Since Russia’s invasion of Ukraine, the United States imposed sanctions on certain companies operating in its market and continues to expand sanctions to companies that facilitate the transfer of funds through digital assets.
Last year, the world’s largest exchange by volume Binance was in the middle of a regulation debacle leading to a withdrawal from the Russian market. The company’s Russian entity was taken over by CommEx which has also announced a closure of its website by May 10.
Read Also: Bitcoin ETFs Reverse Outflow Trend, Gain $15.7 Million
- Ethereum Leads $1.1 Billion Crypto Market Liquidation, Experts See Buy The Dip Opportunity
- Nasdaq-Listed AlphaTON Kicks Off Treasury Strategy, Buys $30M in Toncoin After $71M Raise
- XPL Token Soars 52% as Plasma Mainnet Launch Ignites Trading Frenzy
- ETH Treasury Firm SharpLink to Tokenize SBET Stock on Ethereum
- First Ethereum Staking ETF Begins Trading, Boosting ETH Demand
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
- Bitcoin Price: Analyst Predicts Crash to $104K Before Explosive Rally on Fed Cut Pattern
- HBAR Price Elliot Wave Signals an 86% Rebound as Key Risks Remain
- Will Pi Coin Price Recover Before Month-End After Payochain Listing?
- Chainlink Price Prediction as Whales Buy 800K LINK — Can the Demand Zone Launch a Recovery?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
