The U.S. Department of the Treasury targets Russian blockchain companies to evade sanctions.

 

The U.S. Department of :

the Treasury targets Russian :

blockchain companies to evade sanctions.

The Office of Foreign Assets Control (OFAC), a branch of the U.S. Department of

the Treasury, imposed sanctions on 13 entities and individuals on Monday.

They were accused of developing cryptocurrency-related services that could

facilitate circumventing sanctions on behalf of Russian nationals.

The classifications

1. issued by OFAC aim to curb
2. Russia's use of the global financial
3. system in its conflict with Ukraine.

Brian Nelson :

Deputy Treasury Secretary for Terrorism and Financial Intelligence

stated :

"Russia increasingly resorts to alternative payment mechanisms to evade U.S.

sanctions and continue funding its war against Ukraine."

The Treasury added that it :

"will continue to identify and disrupt companies seeking to assist sanctioned

Russian financial institutions in reconnecting with the global financial system."

OFAC rules fundamentally prohibit U.S.

individuals from transacting with entities classified within the United States.

Financial institutions and others are required to comply with these sanctions to

avoid serious consequences. Dealing with sanctioned parties

through transactions can lead to severe repercussions.

Accusations :

1. by the U.S. Department of
2. the Treasury against Netex24
3. and Bitpapa companies

B-Crypto, Netex24, Tokentrust Holdings, Bitpapa

and Crypto Explorer are among the newly designated entities.

According to OFAC :

the listed entities have developed or operated blockchain services in Russia.

They allege that Netex24 and Bitpapa used cryptocurrencies to transact

with sanctioned banks, cryptocurrency exchanges, and dark web markets.

Specifically :

Chainalysis issued a detailed blog about the sanctioned entities' activities.

According to the report, Netex24 and Bitpapa facilitate transactions for several

Russia-aligned militias and propaganda groups.

These include militias designated by OFAC under the name MOO Veche.

According to Chainalysis, the entities operate in areas

such as Donetsk, Luhansk, or Crimea in Ukraine.

The U.S. government tightens its scrutiny on cryptocurrency-related activities

OFAC's latest move comes following significant focus from the U.S.

government on the cryptocurrency space in the past two years.

Sanctions were imposed on cryptocurrency traders who aided the North Korean

Lazarus Group in converting millions of dollars from cryptocurrencies into cash.

Additionally :

in January, OFAC imposed a fifth round of sanctions on networks linked to

the Hamas militant group. These actions were in response to

Hamas attacks on Israel that occurred last October