TLDR:
- Elliptic links five crypto exchanges to structured routes used for Russian sanctions evasion through P2P and broker networks.
- Wallet sharing between Russian and non-Russian platforms allows sanctioned funds to mix with compliant trading activity.
- Cash-to-crypto services now support cross-border trade payments and access to restricted foreign digital services.
- Blockchain data shows direct financial exposure between these exchanges and multiple sanctioned entities.
Russia-linked crypto services continue to create pathways around international sanctions, according to new blockchain intelligence findings. Several exchanges still provide transaction routes that bypass traditional banking oversight through cryptoasset conversions.
These platforms allow ruble-based funds to move across borders with limited visibility. The activity persists despite increasing regulatory scrutiny on Russia-focused crypto trading.
Five Crypto Exchanges Help Russia Evade Sanctions via Trading Networks
Data published by Elliptic shows that several crypto exchanges maintain financial links to sanctioned Russian entities. These services convert rubles into crypto assets and route them abroad through peer-to-peer and broker networks.
Bitpapa operates as a P2P exchange registered in the UAE but primarily targets Russian users.
U.S. authorities sanctioned the platform in March 2024 for supporting sanctions evasion. Elliptic reports that nearly 10 percent of Bitpapa’s outgoing crypto flows reached sanctioned entities, including direct exposure to Garantex.
Blockchain data also indicates that Bitpapa rotates wallet addresses to avoid detection by transaction monitoring systems.
This strategy obscures the Russian origin of funds when they reach overseas services. The approach complicates compliance checks for counterparties receiving those assets.
Another exchange, ABCeX, facilitates both order-book and P2P ruble trading. It operates from Moscow’s Federation Tower, previously linked to sanctioned platforms.
Elliptic estimates ABCeX processed at least $11 billion in crypto assets, with substantial transfers to Garantex and Aifory Pro.
Wallet Sharing and Cash-to-Crypto Routes Raise Compliance Risks
Elliptic also examined the operational structure of Exmo, which claimed to exit the Russian market after 2022.
The company stated that its Russian business transferred to a separate entity, Exmo.me. On-chain data, however, shows both platforms use the same custodial wallet infrastructure.
Deposits from both services pool into identical hot wallets, while withdrawals originate from the same addresses. This structure allows Russian-facing flows to mix with Western-facing operations.
Elliptic identified more than $19.5 million in direct transactions between Exmo-linked wallets and sanctioned entities, including Grinex and Chatex.
Rapira, incorporated in Georgia but operating from Moscow, also appears in the dataset. Elliptic reports that Rapira moved over $72 million in crypto assets to and from Grinex.
Russian authorities reportedly raided its Moscow offices during a capital flight investigation tied to Dubai transfers.
Aifory Pro specializes in cash-to-crypto services across Moscow, Dubai, and Türkiye. It acts as a payment agent for foreign trade, including transactions between Russia and China.
The firm also offers virtual and Apple Pay-enabled cards funded by USDT balances to access blocked services like Airbnb and ChatGPT.
Elliptic further identified financial links between Aifory Pro and Abantether, with nearly $2 million in cryptoassets transferred. These flows highlight growing intersections between Russian and Iranian crypto networks.
The post Report: 5 Crypto Exchanges Help Russia Dodge Western Sanctions appeared first on Blockonomi.
Source: https://blockonomi.com/report-5-crypto-exchanges-help-russia-dodge-western-sanctions/
