Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
U.S. Sanctions Crypto Money Launderer for Russian Oligarchs

U.S. Sanctions Crypto Money Launderer for Russian Oligarchs

DailyCoinDailyCoin2023/11/03 21:03
By:DailyCoin
  • The U.S. Treasury has designated a “crypto exchange” services provider for Russian oligarchs.
  • The designated individual is believed to have helped cybercriminals launder ransomware payments.
  • The U.S. imposed a range of sanctions on the individual.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned a Russian businesswoman for her alleged role in laundering and moving funds through crypto on behalf of Russian elites and ransomware actors.  

In a press release dated November 3, OFAC announced wide-ranging sanctions on Ekaterina Zhdanova, accusing her of leveraging entities that lack Anti-Money Laundering/Combatting the Financing of Terrorism (AML/CFT) controls to assist her clients in obfuscating their source of wealth.

A “Crypto Exchange” for Russian Oligarchs and Cybercriminals  

As OFAC alleges , Zhdanova conducts multimillion-dollar crypto transfers for Russian oligarchs who have relocated overseas.

Notably, the Treasury said that at some point, the businesswoman moved over $100 million in wealth on behalf of Russian oligarchs to the United Arab Emirates and facilitated tax residency services.

Through these services, Zhdanova allegedly helped her clients secure United Arab Emirates identification cards and open bank accounts in the country.

“Payments were alleged to be made in cash or by virtual currency, and to be received at a Dubai bank account, and then transferred from the Dubai bank account to foreign bank accounts at the discretion of the client,” the statement read.

Other beneficiaries of Zhdanova’s crypto exchange services include cybercriminals affiliated with the Russian Ryuk ransomware group. The Treasury noted that in 2021, the businesswoman laundered over $2.3 million of suspected victim payments on behalf of the group.

Based on these allegations, the Treasury has designated Zhdanova as a crypto money launderer for Russian elites and cybercriminals, imposing wide-ranging sanctions on her.

Sanctions Implications

As a result of today’s designation, the Treasury has blocked all Zhdanova property and interests in property in the U.S. and ordered that they be reported to OFAC.

Further, per the G7’s commitment to crack down on sanctions evasion by the Russian elite, the Treasury warned that financial institutions or entities that engage in transactions with Zhdanova shall be “subject to an enforcement action.”

Read how SBF’s guilty verdict has bolstered crime crackdown in crypto:
Prosecutors Bolster Crime Crackdown Post-SBF Guilty Verdict

Stay updated on the latest crypto seizure by the DOJ:
DOJ Seizes $54M Ether from Narcotics Distribution Scheme

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

What it’s going to take to hit $100K

MicroStrategy announced that it purchased 55,500 bitcoin last week, but that didn’t quite push BTC over the 6-figure edge

Blockworks2024/11/25 22:55

Why analysts are upping price targets for MSTR and COIN

MSTR shares hovered around $402 at 2 pm ET Monday — down 4.7% on the day but up 70% from a month ago

Blockworks2024/11/25 22:55