US & UK Impose New Russian Crypto Sanctions on Fintech Firms

OFAC and the UK's OFSI have issued new Russian crypto sanctions against fintech firms and virtual asset providers facilitating sanctions evasion. Learn the compliance implications.

· July 13, 2026 at 10:40 PM· 6 min read

US & UK Impose New Russian Crypto Sanctions on Fintech Firms

US and UK Target Russian Virtual Asset Providers in Coordinated Action

On March 25, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the United Kingdom’s Office of Financial Sanctions Implementation (OFSI) announced a coordinated set of designations targeting Russia's financial technology and virtual asset sectors. This joint action is the latest measure aimed at disrupting networks used to evade international sanctions and fund Russia's war effort. The designations target 13 entities and two individuals, including several firms offering cryptocurrency services, which Treasury officials state have been instrumental in helping sanctioned Russian entities access the global financial system. This new wave of **Russian crypto sanctions** underscores a growing regulatory focus on the role of digital assets in sanctions evasion.

According to the U.S. Treasury, these designated entities and individuals helped process payments for sanctioned Russian banks, facilitated access to foreign currency, and enabled the movement of funds using cryptocurrencies. The action explicitly targets core parts of Russia's financial infrastructure that have been reorienting toward alternative payment mechanisms since being largely cut off from the Western financial system.

Designated Entities and Evasion Typologies

The sanctions name several Russia-based fintech companies that provide services for tokenizing assets and facilitating crypto payments. The coordinated action highlights how these firms serve as a critical bridge for moving value between the traditional Russian financial sector and the global crypto ecosystem.

Key designated entities include:

* **Atomyze (and Lighthouse LLC):** A fintech company specializing in the tokenization of precious metals and diamonds. It partnered with sanctioned Russian banks to digitize assets, providing a potential avenue for liquidity outside of traditional financial rails. * **Tokentrust AG (and Operator of the Tokentrust Platform):** A Moscow-based fintech firm involved in issuing and managing digital financial assets. It was designated for operating in the technology and financial services sectors of the Russian economy. * **B-Crypto:** A Moscow-based fintech company that, according to UK authorities, has facilitated cross-border payments in crypto, helping Russian entities obscure the origins of their funds. * **Netexchange (Netex24) and Bitpapa:** Two virtual currency exchanges that enabled transactions for sanctioned entities. OFAC noted that Netexchange has conducted transactions for the previously designated Russian darknet market Hydra and the ransomware group Trickbot. Bitpapa, a peer-to-peer (P2P) exchange, also serviced sanctioned Russian banks. * **Crypto Explorer:** Another virtual currency exchange service, noted for its role in facilitating payments between Russia and other countries, including the UAE, and servicing sanctioned Russian entities.

These designations reveal a clear typology of sanctions evasion: using Russian-based virtual asset service providers (VASPs) to convert rubles into cryptocurrency, which can then be moved across borders with greater anonymity than through the SWIFT system. These VASPs often have direct business relationships with sanctioned Russian banks, allowing for seamless off-ramping and on-ramping of funds.

Official Rationale and Listed Crypto Addresses

Brian E. Nelson, Treasury Under Secretary for Terrorism and Financial Intelligence, stated, “Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue to fund its war against Ukraine. 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.”

As part of the **Russian crypto sanctions**, OFAC added dozens of cryptocurrency wallet addresses associated with the designated entities to the Specially Designated Nationals and Blocked Persons (SDN) List. These addresses are primarily on the Bitcoin (BTC), Ethereum (ETH), and TRON (TRX) blockchains and are linked to services like Netexchange and Bitpapa.

Examples of the hundreds of addresses listed by OFAC include:

* **Bitcoin (BTC):** `[evidence withheld pending verification]`, `[evidence withheld pending verification]` * **Ethereum (ETH):** `[0x261E05…487029](https://etherscan.io/address/0x261E0563461412199047719717056636a0487029)`, `[0xEcd763…519B68](https://etherscan.io/address/0xEcd7630733512a87859428F2a5F24c9657519B68)` * **TRON (TRX):** `TW4hA2yR3ySPSJNBnFUXx2Fp2s3aagCphg`, `TLB8mZLumtUhX4a2zB2pEmjEVV3uXDcgTE`

(Note: This is a small sample. The full list is available on OFAC's official site.)

Compliance Takeaway for Financial Institutions

The designation of these entities carries significant compliance implications. All property and interests in property of the designated persons that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. Furthermore, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.

For financial institutions, including banks and crypto exchanges, this action requires immediate updates to screening systems and transaction monitoring programs. Compliance teams must ensure they are screening against not only the newly named entities and individuals but also the associated cryptocurrency wallet addresses.

This coordinated sanctioning demonstrates that regulators are actively using blockchain analytics to identify and target evasion networks. Institutions must enhance their due diligence on transactions involving Russia-based VASPs and be prepared to identify and block fund movements connected to the listed addresses. The risk of secondary sanctions also extends to non-U.S. financial institutions that knowingly facilitate significant transactions for these designated entities.

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FAQ: Understanding the Sanctions

What are OFAC's Russian crypto sanctions? OFAC's Russian crypto sanctions are a series of measures taken by the U.S. Treasury Department targeting individuals and entities using virtual currencies to help Russia evade international economic sanctions. These actions involve adding crypto exchanges, fintech firms, and specific wallet addresses to the SDN list.