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The US government has announced sanctions on 13 fintech companies for providing cryptocurrency-based services to Russian entities seeking to evade economic restrictions amid the conflict in Ukraine.
As per the US Treasury Department, these fintech firms, along with two individuals, have been targeted for their involvement in building or operating blockchain-based services and facilitating virtual currency transactions within the Russian financial sector, thereby potentially aiding sanctions evasion.
Among the sanctioned entities are Russia-based companies such as B-Crypto, Masterchain, and Laitkhaus, which have collaborated with Russian banks to facilitate the issuance, transfer, and exchange of digital assets.
Additionally, Netexchnage has faced sanctions for operating a cryptocurrency exchange, while Atomaiz has been penalized for tokenizing precious metals for Russian entities.
Brian Nelson, the Undersecretary of the Treasury for Terrorism and Financial Intelligence, emphasized, “Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue to fund its war against Ukraine.”
Nelson further stated, “As the Kremlin seeks to leverage entities in the financial technology space, Treasury will continue to expose and disrupt the companies that seek to help sanctioned Russian financial institutions reconnect to the global financial system.”
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