The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on 13 entities and two individuals involved in the financial services and technology sectors of the Russian economy. These entities, including those dealing with virtual assets, are accused of aiding Russian entities in evading US sanctions.
According to the Treasury Department, these designations were made after reports of entities facilitating transactions or providing services that helped sanctioned Russian entities evade sanctions. This action builds upon previous measures taken by OFAC to target companies servicing Russia’s financial infrastructure and limit its access to the global financial system during the ongoing conflict with Ukraine.
Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence, stated that the Treasury will continue to expose and disrupt companies that assist sanctioned Russian financial institutions in reconnecting to the global financial system.
Among the sanctioned firms are Moscow-based fintech companies such as B-Crypto, Masterchain, Laitkhaus, and Atomaiz. These companies are believed to have collaborated with OFAC-designated Russian banks in order to facilitate cross-border settlements and issue digital financial assets. Additionally, Tokentrust Holdings Ltd., based in Cyprus and the majority shareholder of Atomaiz, was also designated.
Other entities targeted include technology companies like Veb3 Tekhnologii and Veb3 Integrator, which provide blockchain solutions to clients such as Sberbank and Alfa-Bank. Bitpapa, a peer-to-peer virtual currency exchange, and Crypto Explorer, a virtual currency exchange operating in Russia and the United Arab Emirates, were also sanctioned.
In addition to the sanctions related to cryptocurrency, OFAC also designated companies associated with the OFAC-designated Echelon Union for Science and Technology, a Moscow-based entity licensed by Russian authorities.
As a result of these sanctions, all property and interests in property of the designated persons within US jurisdiction are blocked and must be reported to OFAC. Foreign financial institutions conducting business with Russia’s military-industrial base also risk facing sanctions.
These sanctions aim to disrupt Russia’s ability to use alternative payment mechanisms and financial technology entities to evade US sanctions and continue funding its conflict with Ukraine. The Treasury vows to closely monitor and respond to Russia’s evolving tactics for evading sanctions while upholding the integrity of the international financial system.
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