OFAC Slaps Sanctions on 13 Entities and 2 Individuals Linked to Russia

Unlocking the power of enforcement, the Office of Foreign Assets Control (OFAC) is cracking down on individuals and entities operating in Russia’s financial services and technology sectors, especially those involved in virtual assets. These actions are aimed at preventing the evasion of US sanctions.

OFAC has identified key players who have been instrumental in facilitating transactions or providing services to help other designated entities avoid US sanctions. This latest move demonstrates OFAC’s commitment to upholding financial integrity and combating illicit activities.

OFAC’s Vigilance on Russian Entities

According to an official statement, OFAC has imposed sanctions on thirteen entities and two individuals operating in Russia’s financial services and technology sectors. Additionally, five entities have been designated due to their connections with previously sanctioned individuals.

Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized the importance of these actions in disrupting Russian efforts to bypass US sanctions and continue funding their activities. These measures are designed to prevent sanctioned Russian financial institutions from re-establishing global financial connections.

The list of companies targeted by the Treasury includes fintech firms based in Moscow, such as B-Crypto, Masterchain, Atomaiz, Veb3 Tekhnologii, and Veb3 Integrator, as well as Tokentrust based in Cyprus. Notably, Atomaiz, backed by Russian billionaire Vladimir Potanin’s Interros Holding, obtained Russia’s first government license for issuing and exchanging digital assets shortly before the conflict in Ukraine.

Insights from Chainalysis on Netex24 and Bitpapa

OFAC also shed light on the activities of Netex24 and Bitpapa, highlighting their involvement in transactions with sanctioned banks, crypto exchanges, and darknet markets using cryptocurrencies. Chainalysis revealed that both services have facilitated significant transfers to sanctioned entities and darknet markets, with a growing trend since the Ukraine conflict began.

Netex24 and Bitpapa have been found to support transactions for sanctioned financial services and crypto entities, as well as pro-Russian militia and propaganda groups. These disturbing findings underscore the need for continued vigilance and enforcement to combat illicit financial activities.