The US government has tried to close the gaps in its sanction program against Russia by going after blockchain and virtual currency companies that, according to entities, has helped circumventing existing checks.
The action that was taken yesterday by the Treasury of Foreign Assets Control (OFAC) office follows a statement of 24 February of the G7 leaders in which they corresponded to “continuing to combat in close cooperation with third countries, all attempts to avoid and circumvent our sanctions and export control measures.”
A total of 13 entities and two people were sanctioned by the treasury yesterday. They include:
- Joint Stock Company B-Crypto (B-Crypto): A Moscow-based fintech company that collaborated with OFAC-designed Rosbank to make cross-border settlements for Russian exporters who use virtual currency
- Obshestvo s Ogranichennoy Otvetstnennostyu Sistemy Sistemy Rapredelenogo Reyestra (Masterchain): a Moscow-based fintech company that publishes blockchain-based tokens with various AC-Supporting Russian banks
- Obshestvo s Ogranichennoy OtvetStnostyu Laitkhaus (Laitkhaus): a fintech company established in Moscow that has worked with Sberbank and VTB Bank designated to issue digital financial assets, to change and transfer and transfer
- Obshestvo s Ogranichenny Otvetstennostyu Atomaiz (Atomaiz): a Moscow-based fintech company that has precious metals and diamonds for Russian companies “Token” for Russian companies
- Obshestvo s ogranichennoy otvetstnostyu veb3 tekhnologii (VEB3 Tekhnologii) and obshestvo s Ogranichennoy Otvetstvennostyu Veb3 Integrator (VEB3 Integrator): Moscow Blockchain firms with customers
- Obshestvo s Ogranichennoy Otvetstennostyu Tsentrent Obrabotki Electonnykh Platezhey (application): working as Netexchange and Netex24, it is a Moscow-based fintech that operates a virtual currency exchange. It has made digital payments possible on entities designated by AC, such as Sberbank, Alfa Bank and the Dark Web Marketplace Hydra Market
- Bitpapa IC FZC LLC (Bitpapa): operates a peer-to-peer virtual currency fair for Russian nationals. It has made transactions possible that are worth millions of dollars with AC-designed Russian entities Hydra Market and Garrantex
- Crypto Explorer DMCC (Crypto Explorer, AKA AWEX): operates a virtual currency exchange in Russia and UAE-based currency exchange between virtual currency, roebels and vae dirhams
“Russia is increasingly turning to alternative payment mechanisms to bypass American sanctions and to continue to finance his war against Ukraine,” said under secretary of the treasury for terrorism and financial information, Brian Nelson.
“Because the Kremlin tries to use entities in the financial technology space, Treasury will expose, expose and disrupt the Russian financial institutions trying to re -explain the Russian financial institutions again with the global financial system.”
All designated entities will have their assets and interests in the American frozen, while transactions with sanctioned persons are blocked.
Read more about American sanctions against Russia: US Treasury focuses on Russian entities in Cyber Influence campaign.