A British cryptocurrency company executed millions of dollars worth of transactions for Russians fighting against Ukraine

The Guardian informs that the British cryptocurrency company Copper transferred digital assets worth more than $ 4.2 million to a crypto wallet belonging to a member of an alleged Russian arms trafficking network, who was later sanctioned by the United States.

An analysis of cryptographic records conducted by media outlets and the International Consortium of Investigative Journalists (ICIJ) indicates a link between one of the most prominent cryptocurrency companies and Jonathan Zimenkov, a Russian citizen born in Israel.

zimenkov, 29, was sanctioned by the United States in February 2023 for allegedly helping the Russian military invade Ukraine as part of the Zimenkov Network, an arms trafficking and sanctions evasion network headed by his father, Igor Zimenkov.

Although Zimenkov was not under sanctions at the time of the transaction, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) said it believes the network had been in operation for several years before restrictions were imposed on 22 individuals and entities in various countries

«Copper takes its compliance, legal and regulatory obligations very seriously and operates in full compliance with all applicable regulatory standards, including all applicable sanctions in the UK,» a company spokesperson said.

The owner of the wallet that received transactions in the ethereum ETH $3,337.85 Bridged Ether (StarkGate) 0.67% Market capitalization $0.28 billion VOL. 24 hours $2.08 billion was not named in the blockchain records — only the address of his crypto account was indicated. The same address was included in a February 2023 announcement by the U.S. Treasury Department detailing sanctions against Zimenkov’s network.

The U.S. government said it identified Zimenkov as part of what OFAC called «a sanctions evasion network that has been active for several years.» The U.S. government accused his father of running this network, which allegedly traded in arms.

The Treasury Department alleged that the Zymenkovs «participated in projects related to Russian defense capabilities, including supplying a Russian company with high-tech devices after Russia launched a full-scale invasion of Ukraine.»

In its sanctions announcement, the US Treasury Department stated that Zimenkov’s network supported the sanctioned Russian defense exporters Rosoboronexport and Rostec.

According to the U.S. Treasury, Igor Zimenkov worked closely with his son and others «to enable Russian defense sales to third country governments.»

The two men allegedly corresponded with sanctioned Russian defense firms and participated in «numerous deals to sell Russian cybersecurity equipment and helicopters abroad.»

Last year in November, the OFAC sanctions list included Russian citizen Ekaterina Zhdanova, who, according to the US authorities, used cryptocurrencies to circumvent sanctions and move funds of «Russian elites» abroad.

Zhdanova used cryptocurrencies to conceal the source of her client’s $ 2.3 million and then transfer the funds to Western Europe. The Russian woman used the services of various cryptocurrency exchanges that do not comply with AML and KYC rules for transferring funds. One of the main platforms, according to US law enforcement agencies, was the Russian exchange Garantex.