Cryptocurrency sanctions against Russians will become even tougher

The OFAC sanctions list includes Russian citizen Ekaterina Zhdanova, who, according to the US authorities, used cryptocurrencies to circumvent sanctions and transfer funds of «Russian elites» abroad.

The US authorities stated that in March 2022, 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.

«Through key intermediaries such as Zhdanov, the Russian elite, hacker groups, and other illegal actors have tried to evade US and international sanctions, including through the use of virtual currencies. We remain committed to protecting the U.S. and international financial system from those who seek to use cryptocurrency technologies and other financial instruments using virtual assets,» said Brian Nelson, Under Secretary of the Treasury for Combating Terrorism and Financial Intelligence.