Ukraine has just carried out a major crackdown, freezing the assets of 60 companies and 73 individuals suspected of financially supporting Russia's war through cryptocurrency. The decree signed by President Volodymyr Zelenskyy on Sunday targets entities related to Russia's financial plans, many of which use crypto.

Sanction targets and reasons

Zelenskyy calls this a "special sanctions package," targeting Russia's broader financial infrastructure, including payment equipment manufacturers and international trading intermediaries. He stated that one company alone, before being sanctioned, had "funneled several billion dollars, primarily for the needs of Russia's military-industrial complex."

This decree, initiated by the National Bank #Ukraine targets the 19 largest crypto mining companies in Russia, 17 digital asset system operators, and 5 crypto exchanges involved in evading sanctions. These companies include LLC A7 (issuing stablecoin pegged to the ruble) and software providers for Russian banks like United Financial Technologies and Bifit.

Foreign companies are blacklisted

Five foreign companies have also been sanctioned for facilitating Russia's evasion of sanctions through crypto:

TokenTrust Holdings (Cyprus)

EXMO RBC LTD (Kazakhstan), operates EXMO.me in Russia, Belarus, Kazakhstan.

Three UAE-based companies, AWX Solutions, Crypto Explorer, and Bitpapa, which have already been on the US sanctions list, are blacklisted for supporting crypto transactions for Russian users.

Global context and concerns

Blockchain analysis agencies like Chainalysis have repeatedly warned that Russia is the "loudest and possibly most prevalent" country using crypto to evade sanctions. According to Chainalysis's February report, sanctioned regions received $15.8 billion in cryptocurrency in 2024, accounting for about 39% of total illicit cash flow, with Russia, Iran, and North Korea leading the way.

A recent report from the Financial Action Task Force (FATF) also warns that crypto is helping sanctioned countries like Russia fund weapons programs and cyber activities. Ukraine's latest sanctions come amid increasing battlefield tensions, with both sides ramping up military and economic pressure. #russia