The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on three cryptocurrency exchanges – Bitpapa IC FZC LLC, Crypto Explorer DMCC (AWEX), and Obshchestvo S Ogranichennoy Otvetstvennostyu Tsentr Obrabotki Elektronnykh Platezhey (TOEP) – for their roles in enabling the evasion of economic restrictions on Russia following its invasion of Ukraine in 2022. These designations also encompass thirteen entities and two individuals operating within the Russian financial services and technology sectors, reflecting a comprehensive effort to target entities aiding in sanctions evasion and curtailing Russia’s use of the international financial system to support its actions against Ukraine. Bitpapa, accused of facilitating transactions with sanctioned Russian entities Hydra Market and Garantex, along with Crypto Explorer’s currency conversion services between virtual currencies, rubles, and UAE dirhams, are among the entities facing OFAC sanctions for their involvement in circumventing sanctions measures.
Additionally, the sanctions extend to TOEP, another virtual currency exchange, allegedly enabling digital payments in rubles and virtual currencies to entities like Sberbank, Alfa-Bank, and Hydra Market. Further penalties target Moscow-based fintech firms, including B-Crypto, Masterchain, and Laitkhaus, which have collaborated with sanctioned Russian banks to manage cryptocurrency assets. These regulatory measures involve freezing all properties and interests in the U.S. associated with the designated entities and individuals, emphasizing the broad impact of the sanctions on those entities helping sanctioned Russian financial institutions access the global financial system. The U.S. sanctions underline a strategic effort to disrupt channels enabling Russia to fund its actions in Ukraine and prevent circumvention of established economic restrictions.
