Analysts have recorded the emergence of a network of Russian cryptocurrency platforms that are actively used for large crypto transactions aimed at circumventing international sanctions.
This is reported by Business • Media
- Most of the mentioned exchanges are not under international restrictions, despite connections with sanctioned entities.
- After the liquidation of the Garantex exchange, its role in sanction evasion schemes has been taken over by other platforms.
New Exchanges in Sanction Evasion Schemes
According to a recent report by the analytical company Elliptic, currently, five crypto exchanges from Russia play a key role in supporting financial flows that bypass banking controls and sanctions. The only platform from the list that is under sanctions is Bitpapa, which was added to the U.S. Treasury’s Office of Foreign Assets Control sanctions list in March 2024.
Analysts note that nearly 9.7% of all outgoing cryptocurrency flows from Bitpapa are directed to organizations that are under sanctions. Furthermore, the exchange regularly changes its wallet addresses to complicate transaction tracking.
“After the liquidation of Garantex, the infrastructure for circumventing transaction bans has been redistributed among other platforms.”
Bitpapa transactions with Garantex, Grinex, Chatex, and other platforms.
Connections Between Platforms and Transaction Volumes
The platform ABCeX plays the largest role among the yet-to-be-sanctioned platforms. Experts estimate that from its Moscow office in the Federation Tower, where Garantex previously operated, it has conducted at least $11 billion in cryptocurrency. A significant portion of these funds was directed to Garantex and Aifory Pro.
The report also specifically mentions the exchange Exmo, which announced its exit from the Russian market in 2022. However, blockchain operation analysis showed that Exmo and the Russian platform continue to jointly use the same custodial wallet infrastructure. The volume of direct transactions with sanctioned organizations here exceeded $19.5 million.
Among the entities mentioned in the report is the Georgia-registered exchange Rapira, which has an office in Moscow. It has conducted transactions exceeding $72 million with Grinex, which is under sanctions. According to analysts, Russian law enforcement previously conducted searches at this company’s offices over suspicions of illegal capital outflow.
The fifth platform, Aifory Pro, specializes in converting cash into cryptocurrency and operates in Moscow, Dubai, and Turkey. The service also issues virtual cards that can be topped up in USDT for payments for prohibited services.
Elliptic specialists emphasize that the closure of Garantex did not lead to the cessation of the infrastructure for circumventing sanctions, but rather facilitated its distribution among other exchanges.
Recall that recently, Ethereum co-founder Vitalik Buterin expressed support for Ukraine ahead of the fourth anniversary of Russia’s full-scale invasion.