US Treasury Flags 13 Russian Firms For Crypto Use To Evade Sanctions

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.

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