The United States government has taken a significant step in its efforts to tighten sanctions against Russia by targeting blockchain and virtual currency firms that have been aiding entities in evading existing controls. This move by the Treasury’s Office of Foreign Assets Control (OFAC) comes in response to a joint statement by the G7 leaders on February 24, where they pledged to collaborate with other countries to combat any attempts to bypass sanctions and export control measures.
A total of 13 entities and two individuals were sanctioned by the Treasury, including Moscow-based fintech companies like B-Crypto, Masterchain, Laitkhaus, Atomaiz, Veb3 Tekhnologii, and Veb3 Integrator. These companies have been working with OFAC-designated Russian banks to facilitate cross-border settlements, issue blockchain-based tokens, and tokenize precious metals and diamonds. Additionally, firms like TOEP, Bitpapa, and Crypto Explorer have been operating virtual currency exchanges that have enabled transactions with sanctioned Russian entities.
Brian Nelson, the under secretary of the Treasury for terrorism and financial intelligence, highlighted the Kremlin’s use of alternative payment mechanisms to fund its activities in Ukraine. He emphasized the importance of disrupting entities in the financial technology space that assist sanctioned Russian financial institutions in reconnecting to the global financial system.
As part of the sanctions, all designated entities will have their assets and interests in the US frozen, and transactions involving sanctioned individuals will be blocked. This targeted action is aimed at curbing Russia’s efforts to evade sanctions and prevent it from accessing the international financial system.
For more information on US sanctions against Russia, you can refer to the US Treasury’s recent targeting of Russian entities involved in cyber influence campaigns. Stay updated on the latest developments in the ongoing efforts to hold Russia accountable for its actions.