Russians have learned to circumvent Western sanctions with the help of cryptocurrencies

Deutsche Welle informs that when Russian banks were disconnected from the SWIFT system under sanctions due to the full-scale military aggression against Ukraine, the occupiers began transferring money from Russia using digital assets.

Usually, such transactions are conducted through so-called p2p services on crypto exchanges, when the exchange takes place with other individuals. The user registers on the exchange, goes to the p2p section and sees a list of traders who sell cryptocurrency and accept payments from Russian banks. Once the right trader is selected, rubles are debited from the user’s Russian card, and the trader transfers cryptocurrency to him at the rate he sets.

Most often, Russians transfer money using the USDT cryptocurrency, which is pegged to the dollar at a one-to-one ratio. «In simple terms, you find USDT with an exchange rate of 100 rubles, then buy 10 tokens for 1000 rubles. Then you look for a buyer of USDT for dinars, sell your 10 USDT tokens, and you get dinars to your account. USDT is the most convenient to use, because the largest number of trades take place in this cryptocurrency on the exchange, and because it is pegged to the dollar, it is convenient to calculate the total amount,» explains the citizen of the terrorist state and adds that p2p trading can be done in various cryptos, including bitcoin and other digital currencies.

Sometimes cryptocurrencies are exchanged for regular money during a personal meeting. This method is considered the most profitable because you don’t have to pay exchange fees. You can find and contact a trader through special chats on Telegram. Usually, such chats are closed, and you can enter them only after moderators verify your identity.

According to Singapore-based TripleA, in 2023, about 8.5 million Russians used cryptocurrency, which is 5.8% of the country’s population. The occupiers are ranked 11th in the world in terms of the amount of currency stored on crypto wallets. According to the Russian Ministry of Finance, about 13 million Russians conduct transactions with cryptocurrencies. Of these, 1 million are active users with a daily turnover of more than RUB 10 billion.

Last year in October, the EU tightened sanctions against the killer country regarding cryptocurrency transactions in the eurozone. Companies with a European license were banned from opening accounts and crypto wallets for citizens of the aggressor state.

According to analysts, as of today, a total of 10,000 to 20,000 Russians have had their accounts blocked on cryptocurrency exchanges, and the amount of funds under sanctions exceeds RUB 2−3 billion in cryptocurrency.