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- Russia-linked crypto exchanges still help bypass global sanctions.
- Peer-to-peer trading enables cross-border payments outside banks.
- Several high-risk platforms remain unsanctioned despite clear links.
According to the blog, crypto asset exchanges with operational or financial ties to Russia continue to weaken international sanctions. These platforms open payment routes beyond the reach of banks.
They allow sanctioned actors to move value across borders with speed. They also reduce transparency. The process often starts with ruble conversion. Funds then enter crypto networks. They later exit as local currency abroad through brokers or exchanges.
This structure avoids traditional checks. Regulators face growing pressure to respond. Many exchanges accept fiat linked to Russia. They rely on peer-to-peer markets and internal wallets. Users convert rubles into crypto assets. They then send funds across borders.
No Banks Involved as Crypto Routes Bypass Oversight
No correspondent bank is involved, and no compliance desk is ever aware of the flow. The overseas platforms or brokers later convert the funds into the local currency. The process conceals the origin of the funds and also divides the control process. Some exchanges are also registered abroad, claiming to be foreign exchanges. However, the on-chain data reveals a different story.
The trading volume associated with the sanctioned actors remains significant. The gaps in the enforcement process continue to exist. Bitpapa is a peer-to-peer platform, and its registration is in the UAE. The majority of its users are based in Russia. The platform facilitates the swapping of rubles into different cryptocurrencies.
The U.S. Office of Foreign Assets Control sanctioned Bitpapa in March 2024. The blockchain data reveals a significant exposure to sanctioned actors. Almost a tenth of the outgoing funds go to the sanctioned actors. A significant percentage of the funds go to Garantex.
ABCeX facilitates order book and peer-to-peer exchanges. The registration of the platform is in Moscow, and its office is located in the Federation Tower. The website used to host Garantex in the past. The platform facilitates the movement of a large volume of funds. The funds are transferred directly to the sanctioned actors, including Garantex and Aifory Pro.
Exmo Separation Claims Clash With On-Chain Evidence
Exmo’s situation illustrates the issue of separation. They claimed to have separated after 2022, selling their operations in Russia to Exmo.me. However, the data does not support this. Both platforms share the same custodial addresses. Deposits and withdrawals are mixed. Money from Russian users combines with money from the West.
Value of transactions exceeds $19.5 million with sanctioned parties like Grinex and Chatex. Rapira has operations in Georgia and Moscow. They support the Russian Ruble. They sent over $72 million to Grinex. Law enforcement raided their office in Moscow as part of an investigation into capital flight.
Aifory Pro offers cash-to-crypto services in Moscow, Dubai, and Türkiye. They function as a payment agent for foreign trade. They support virtual cards for users of USDT. Users can pay for services like Airbnb and OpenAI tools, which are otherwise banned. They also sent nearly $2 million to Abantether.
Also Read: Whale Accumulation Surge Highlights Bitcoin’s Potential Amidst Selling Pressure
