Blockchain forensics firm Elliptic has identified four cryptocurrency exchanges that allegedly facilitate Russia sanctions evasion, including by helping to convert rubles into crypto-assets and move value across borders without the direct aid of traditional banking channels.
In a post to its blog on Saturday, Elliptic cited:
- Bitpapa, a peer-to-peer exchange registered in the UAE but aimed primarily at Russian users. Elliptic estimates that about 9.7 percent of Bitpapa’s outgoing crypto funds were destined for targets of OFAC sanctions, including roughly 5 percent to the sanctioned exchange Garantex.
- ABCeX, which offers both order-book and peer-to-peer ruble-to-crypto trading, operates an office in Moscow’s Federation Tower and uses wallet obfuscation techniques to reduce traceability. Elliptic believes ABCeX has processed at least $11 billion in cryptoassets, with “significant amounts” sent to sanctioned entities, including Garantex and Aifory Pro.
- Exmo, which said it exited Russia by selling its regional business to Exmo.me, but blockchain analysis showed the two platforms still share custodial wallet infrastructure, pooling deposits into the same hot wallet addresses and issuing withdrawals from the same addresses. Exmo has conducted more than $19.5 million in direct transactions with sanctioned entities, Elliptic said.
- Rapira, a Georgia-incorporated exchange with a Moscow office that facilitates ruble-based trading. The exchange has conducted more than $72 million in direct crypto transactions to and from the sanctioned exchange Grinex. Elliptic also reported Rapira’s Moscow offices were raided in an investigation into suspected capital flight to Dubai.
Read more at Elliptic