The US government has sanctioned 13 fintech companies for providing cryptocurrency services to Russian firms attempting to evade economic restrictions imposed since the start of the war in Ukraine.
According to the US Treasury Department, these fintechs, along with two individuals, have either developed or operated blockchain-based services or facilitated virtual currency payments within the Russian financial sector, thereby enabling potential sanctions evasion.
The sanctioned firms include Russia-based B-Crypto, Masterchain, and Laitkhaus, all of which have collaborated with Russian banks to issue, transfer, and exchange digital assets. Additionally, Netexchnage has been penalized for operating a crypto exchange, while Atomaiz has been sanctioned for tokenizing precious metals for Russian companies.
“Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue to fund its war against Ukraine,” stated Brian Nelson, undersecretary of the Treasury for Terrorism and Financial Intelligence.
“As the Kremlin seeks to leverage entities in the financial technology space, the Treasury will continue to expose and disrupt the companies that assist sanctioned Russian financial institutions in reconnecting to the global financial system,” Nelson emphasized.