US Sanctions: Russian Crypto Firms and Individuals Named for Violating Sanctions

US Sanctions: Russian Crypto Firms and Individuals Named for Violating Sanctions

The US government has named various companies and individuals who allegedly provided crypto products and services to evade sanctions against Russia. According to the US Treasury Department's Office of Foreign Assets Control, 13 companies and two individuals operating in the financial services and technology sectors of the Russian economy have been sanctioned. Some of the sanctioned companies have facilitated transactions or offered other services to help companies affected by the sanctions. The sanctioned companies include Moscow-based fintech firm B-Crypto, which, in partnership with Rosbank, is said to have helped Russian exporters make cross-border payments using cryptocurrencies. Rosbank itself is also under US sanctions. Other sanctioned companies include the Moscow fintech companies Masterchain, Laitkhaus and Atomaiz. Peer-to-peer crypto exchange Bitpapa and centralized digital asset exchange Crypto Explorer were also sanctioned. In addition, companies outside of Russia were also sanctioned, including Eastern Europe-based companies Tokentrust Holdings (Cyprus) and Bitfingroup (Estonia). Blockchain technology companies Veb3 Integrator and Veb3 Tekhnologii, as well as fintech company TOEP, which operates a cryptocurrency exchange, are also on the list of companies helping Russian companies and individuals circumvent the sanctions. The two sanctioned individuals are Igor Veniaminovich Kaigorodov, the majority owner of Veb3 Integrator and Veb3 Tekhnologii, and Timur Evgenyevich Bukanov, the owner and director of TOEP. Some of America's economic and trade sanctions against Russia have been in place for decades, but some of the most severe sanctions were imposed following Russia's invasion of Ukraine in February 2022. Last year it was also reported that the world's largest crypto exchange Binance was being investigated by US authorities for possible violations of Russia sanctions.

Here is a table with information about the sanctioned companies and individuals:

It is important to note that some of the sanctions that the US has imposed on Russia have been in place for a long time, while others have been added more recently due to the Ukraine crisis. The use of cryptocurrencies and blockchain technology to circumvent these sanctions is an example of the adaptability and potential of these technologies. Binance's investigation into Russia sanctions also shows that crypto exchanges and companies in the crypto space are increasingly being monitored by regulators.