TOKEN2049 took swift action to remove all references to the A7A5 stablecoin from its website and speaker roster in response to inquiries from Reuters. This move shed light on the event’s reactive stance towards a major compliance scandal involving the platinum sponsor, which is targeted by U.S. sanctions.
Summary
- TOKEN2049 removed sanctioned A7A5 stablecoin from its sponsor list following Reuters’ inquiries.
- A7A5, associated with Kremlin ally Ilan Shor and Russia’s Promsvyazbank, has facilitated $70.8 billion in transactions since its launch.
- With 41.6 billion tokens valued at nearly $500 million in circulation, concerns arise over sanctions evasion and global adoption.
On October 3rd, Reuters revealed that TOKEN2049 organizers swiftly eliminated any mention of the A7A5 stablecoin, a token under sanctions from the U.S. and U.K. for allegedly aiding Russia in evading financial penalties, after being contacted for comment.
This removal included scrubbing A7A5 from its platinum sponsor list and canceling a planned appearance by its director, Oleg Ogienko, at the event in Singapore.
During the event, Ogienko confirmed to Reuters that his operation was indeed the entity targeted by Western sanctions, stating that they had regularly applied for and received sponsorship.
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Reasons behind Western sanctions on the A7A5 stablecoin
The scrutiny surrounding A7A5 is significant. In August, the U.S. and U.K. imposed sanctions on entities linked to the stablecoin’s launch, alleging that it was part of a network aimed at helping Russia bypass financial restrictions following its invasion of Ukraine. Launched in January and pegged to the ruble, the stablecoin was designed to establish a payment channel beyond the control of Western banks.
According to analysis by blockchain analytics firm Elliptic, the A7 group, led by Ilan Shor, a sanctioned Moldovan oligarch and Kremlin ally, is the mastermind behind the A7A5 stablecoin. The group is partially owned by Russia’s state-owned Promsvyazbank, itself under sanctions for supporting Russia’s defense industry.
The scale of the token has quickly matched its political implications. Elliptic reports that there are currently 41.6 billion A7A5 tokens in circulation, valued at almost $500 million.
What’s more revealing is the substantial value it has transacted. Since its launch, the stablecoin has processed a staggering $70.8 billion in transactions, showcasing its rapid adoption as a tool for international settlements.
To establish the required liquidity for its ecosystem, the creators of A7A5 utilized the very system they aimed to evade. Leaked conversations from April 2025 show A7 employees coordinating a market-making strategy, where A7 wallets sent over $2 billion in USDT to various exchanges to systematically purchase A7A5, creating a robust and liquid market shielded from traditional financial systems.
Ogienko’s defense of the A7A5 stablecoin
During TOKEN2049, A7A5 executive Oleg Ogienko defended the project as a legitimate payment solution. He maintained that it had no ties to money laundering and complied with Kyrgyzstan’s regulatory framework.
He highlighted its primary purpose as facilitating cross-border payments for Russian companies and their trading partners, emphasizing strong adoption in Asia, Africa, and Latin America. Ogienko stated that “many of them use our stablecoin… and these transactions amount to billions of dollars.”
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