- Experts have discovered a network of cryptocurrency platforms through which the Russian Federation conducts large-scale transactions.
- Most exchanges are not subject to sanctions, despite their interaction with sanctioned organizations in Russia.
- After Garantex ceased operations, the functions of evading sanctions shifted to other platforms.
The analytical company Elliptic has released a report identifying five cryptocurrency exchanges linked to Russia that continue to facilitate the evasion of international sanctions. Experts emphasize that these platforms create alternative financial channels outside the control of traditional banking structures.
This is reported by Finway
The only exchange on the list that is sanctioned is Bitpapa. The U.S. Office of Foreign Assets Control (OFAC) added it to the blacklist in March 2024. According to Elliptic’s estimates, about 9.7% of Bitpapa’s transactions are directed to organizations under sanctions. Additionally, the exchange constantly changes wallet addresses to avoid tracking.
Cryptocurrency Exchanges Instead of Garantex: Shared Infrastructure and Transaction Volumes
The most significant platform that has not yet been sanctioned is ABCeX, according to analysts. The report states that it processed at least $11 billion in cryptocurrencies from its Moscow office in the “Federation Tower” — where Garantex previously operated. A significant portion of the transactions was directed to Garantex and Aifory Pro.
Particular attention is given to Exmo, which announced its exit from the Russian market after 2022. However, blockchain analysis confirmed that the Western platform and the mentioned exchange are still connected by identical custodial wallet infrastructure. The amount of direct transfers to sanctioned organizations exceeded $19.5 million.
Elliptic emphasized that the closure of Garantex did not eliminate the infrastructure for evading sanctions, but merely redistributed it among other exchanges.
New Sanctions Evasion Hubs: Georgia, Moscow, Istanbul, Dubai
The Elliptic list also includes the Georgian Rapira, which has an office in Moscow. The platform has conducted transactions exceeding $72 million with the restricted exchange Grinex. It is known that Russian authorities have already conducted searches at Rapira’s offices due to suspicions of illegal capital outflow.
Another platform, Aifory Pro, offers cash-to-cryptocurrency exchange services in Moscow, Dubai, and Turkey. Additionally, the company issues virtual cards that can be topped up with USDT for payments to services that are restricted due to sanctions.
Overall, Elliptic analysts indicate that after the liquidation of Garantex, key functions for evading sanctions have gradually redistributed among new platforms, complicating the process of monitoring financial flows from Russia in the cryptocurrency sector.