Crypto Exchanges Facilitate Russia's Sanctions Evasion Efforts

A new study by blockchain analysis firm Elliptic has shed light on the use of cryptocurrency exchanges for sanctions evasion in Russia. According to the report, five exchanges have been linked to high-volume transactions with sanctioned entities.

The study found that these exchanges allowed cross-border fund movement and enabled the conversion of rubles into cryptoassets via their services. The funds were then transferred internationally and converted through overseas brokers or exchanges.

One of the exchanges mentioned in the report, Bitpapa, was previously sanctioned by the Office of Foreign Assets Control (OFAC) in March 2024 for evasion concerns. Elliptic estimates that 9.7% of funds leaving Bitpapa reached sanctioned destinations directly.