The U.S. Treasury’s Office of Foreign Assets Control sanctioned multiple companies and individuals accused of using stablecoins to help Russia skirt international sanctions tied to its war in Ukraine on Aug. 14.

The designations target both Russian-linked businesses and foreign intermediaries alleged to have facilitated large-scale cross-border transactions for sanctioned entities.

The move highlights OFAC’s growing focus on stablecoins, which regulators say have become a preferred tool for sanctions evasion due to their speed, global reach, and relatively low transaction costs compared to traditional banking.

High volume ruble-backed transfers

A7 LLC, the creator of the ruble-backed A7A5 stablecoin, was singled out for its reported role in transferring about $1 billion daily, according to blockchain analytics firm Elliptic.

A7 and its subsidiaries, A71 and A7 Agent, are majority-owned by Ilan Shor, who was convicted in 2017 for his role in the theft of $1 billion from three Moldovan banks, and Russian state-owned Promsvyazbank (PSB), which is a sanctioned entity due to its role in financing Russia’s defense sector.

Both Shor and PSB have been accused of undermining democratic processes abroad, including alleged vote-buying in Moldova’s 2024 elections.

Old Vector LLC, based in Kyrgyzstan, serves as the issuer of the A7A5 token. While Kyrgyzstan maintains a permissive regulatory framework for crypto issuers, U.S. officials allege the company’s activities were integral to Russia’s sanctions evasion network.

Platforms linked to sanctioned entities

The Treasury also targeted entities tied to Sergey Mendeleev, co-founder of the sanctioned Garantex crypto exchange, which was used to move illicit funds, including via Tether’s stablecoin USDT.

Garantex was dismantled with assistance from the U.S. Secret Service, which froze $26 million in USDT with Tether’s help.

Mendeleev is also behind the “Cryptorouble” (RUBT) stablecoin and Exved, a cross-border payments platform designed for Russian exporters and importers operating under sanctions pressure.

Exved reportedly uses USDT to obscure Russian business ties in transactions worth tens of billions of rubles each month. Technical services to Exved are provided by Indefi Smartbank, backed by Russian oligarch Alexander Lebedev.

Kyrgyzstan-based Grinex, described by Elliptic as Garantex’s successor, was also sanctioned for facilitating trades in A7A5 and USDT.

The action reflects OFAC’s increasing scrutiny of cryptocurrency in sanctions enforcement. In recent years, the agency has expanded its Specially Designated Nationals (SDN) list to include a growing number of digital asset addresses, enabling exchanges, payment processors, and financial institutions to block transactions linked to sanctioned actors.

Elliptic said it has updated its blockchain monitoring tools so clients can detect and block any transactions tied to the sanctioned wallets and entities. Regulators have signaled they will continue targeting stablecoin-based systems that bypass the traditional financial sector, viewing them as a growing threat to sanctions compliance.

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Russian professional basketball player Daniil Kasatkin was arrested in France at the request of the United States for allegedly acting as a negotiator for a ransomware gang.

Daniil Kasatkin is a Russian basketball player who briefly played NCAA basketball at Penn State before returning to Russia in 2019. In four seasons with MBA-MAI, he appeared in 172 games before he left the team.

According to French media, Kasatkin was arrested at Paris’s Charles de Gaulle airport on June 21st after landing in France with his fiancée.

The arrest was made as part of a United States international arrest warrant for his role as an alleged negotiator for a ransomware gang.

Kasatkin is now under custody while the US seeks to have him extradited to face charges of “conspiracy to commit computer fraud” and “computer fraud conspiracy.”

His lawyer alleges that Kasatkin is not guilty of these crimes and that they are instead linked to a second-hand computer that he purchased.

“He bought a second-hand computer. He did absolutely nothing. He’s stunned ,” his lawyer, Frédéric Bélot, told the media.

“He’s useless with computers and can’t even install an application. He didn’t touch anything on the computer: it was either hacked, or the hacker sold it to him to act under the cover of another person.”

While the name of the ransomware gang was not disclosed, it is reported to have been behind attacks on more than 900 companies, including two federal agencies, between 2020 and 2022.

This description closely matches similar language used by the Department of Justice to refer to the notorious Conti ransomware gang, which emerged as a successor to Ryuk in 2020 and shut down in 2022, following a data breach.

However, it was not previously reported that Conti breached any federal agencies, though they are linked to attacks on state governments.

Last month, French police also arrested four alleged operators of the BreachForums hacking forum, including threat actors using the alias IntelBroker and ShinyHunters.

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Tim Alper

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July 6, 2025

The Russian Energy Ministry has begun compiling a national registry of crypto mining rigs as it looks to crack down on illegal mining and boost tax revenues.

The state-run newspaper RIA Novosti reported that the ministry is working on the plan with the Federal Tax Service and the Ministry of Digital Development.

The registry, the ministry claims, will serve as a central database of all the equipment used for cryptocurrency mining in the nation.

Crypto Mining Rigs: Russians Must Register Hardware

Russia’s Deputy Minister of Energy, Petr Konyushenko, told RIA Novosti that the ministry has sent its draft document to regions with high levels of crypto mining activity.

Konyushenko said the registry will let Moscow “precisely identify” who in the nation is “using electricity to mine cryptocurrencies.”

This will allow regulators and tax officials to ensure miners are complying with mining-related laws. It will also help boost tax revenues, the ministry claimed. Konyushenko said:

“This is a step toward legalizing the industry and reducing illegal energy consumption.”

While legal crypto mining is on the rise in Russia, so too is the illegal sector. Scores of industrial crypto miners are known to be operating all across the country.

Many use illegal connections to power grids. And others use subsidized power intended for residential households to power their data centers.

The database will require all miners to submit rig serial numbers and device models. They will also have to submit details on other mining-related equipment.

The Energy Ministry and the Industry Ministry first proposed creating a national crypto mining equipment registry back in February this year.

Critics Unsure About Ministry Plans

Government officials said a unified registry of “equipment without which cryptocurrency mining is impossible” was needed.

The idea is not without its vociferous critics. These include the lawmaker Anton Gorelkin, one of the architects of Russia’s crypto mining laws. Gorelkin said it was “unclear how exactly this registry will help combat illegal mining.”

He added that Moscow already has the “necessary tools to identify miners who use electricity illegally.”

Legalize Black-market Rigs, Says Lawmaker

The lawmaker also explained that Moscow needed to focus its efforts on helping miners legalize crypto mining equipment bought using sanctions-evading “shadow schemes.”

This would help miners “legalize” mining rigs they buy on the black market and “quickly add them to the registry,” Gorelkin said.

The media outlet RBC reported that officials (including customs officers) are considering issuing an “amnesty” for crypto miners who have “no other choice” than to buy rigs through underground channels in a bid to evade sanctions regimes.

Earlier this month, police in Sayansk announced they had shut down an illegal crypto mining farm fitted with 240 mining rigs. Officers said the farm was using enough electricity to power 2,000 apartments.

Also this month, police in St. Petersburg said they seized an undisclosed number of crypto mining rigs operating in a warehouse in an industrial zone near the iconic Mitrofanievsky Highway.

The Russian government is attempting to seize a gold mining firm owned by a billionaire accused of breaking a rule that bans public officials from engaging in entrepreneurial activity.

The Russian Prosecutor General’s Office has filed a lawsuit to seize shares of billionaire Konstantin Strukov’s gold mining company, Yuzhuralzoloto, state-owned media Tass reports.

Strukov, who has been a deputy of the Legislative Assembly of the Chelyabinsk Region for 25 years, while also the deputy chairman of the Legislative Assembly, acquired the firm through a bankruptcy procedure. He was also the company’s CEO between 1997 and June 2001 before he became chairman of the board of directors.

The government’s lawsuit alleges that Strukov violated a ban on all public officials from engaging in business activity.

The rule also requires politicians to sell all their securities, shares, or stakes in companies before taking office.

According to Tass, Yuzhuralzoloto produces over 450,000 ounces of gold per year, which is $1.505 billion annually with a profit of 34 billion rubles – $432.43 million.

Prosecutors allege that Strukov frequently takes profits from the mine and transfers them abroad to Montenegro, Belgium, Switzerland, Luxembourg, Latvia, Estonia and Turkey where he and his family purchased houses, yachts and other luxury items.

The Russian government is requesting that 100% of Strukov and his daughter’s ownership of the company be transferred to the state.

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Rostec, the Russian defense and technology conglomerate, announced on July 3 that it will introduce a ruble-pegged stablecoin and a linked payment network this year, utilizing Tron infrastructure.

According to the Russian news agency TASS, Rostec named the token RUBx and set a one-to-one exchange rate with the ruble. 

Deputy General Director Alexander Nazarov stated that the corporation will manage the asset through an in-house platform called RT-Pay. The report also said that each coin carries a legal claim to an equivalent amount of currency, providing companies and individuals with a means to transfer rubles on public rails while meeting domestic compliance requirements.

Engineers have built RUBx on the Tron blockchain and plan to publish the smart contract code on GitHub. Project head Dmitry Shumayev also revealed that CertiK will audit the contract before launch. 

Rostec stated that RT-Pay will integrate with existing bank systems, facilitating straight-through settlement, interactions with external wallets, and the execution of smart contracts. 

The firm cited complete alignment with the Russian Central Bank’s guidelines, anti-money laundering statutes, and counter-terrorist finance measures.

Shumayev outlined a phased rollout that surveys demand across sectors, with later stages expected to support additional financial services. Rostec framed the approach as an extension of its mandate to develop strategic technology inside Russia’s borders.

Russian state dives into crypto

The stablecoin plan follows another state-backed move into blockchain finance. Sberbank, the country’s largest lender, sold structured bonds on May 30 that tie returns to Bitcoin’s dollar performance and the dollar-ruble exchange rate. 

The bank said at its launch that the over-the-counter product settles in rubles and targets qualified investors who want crypto-linked exposure without the need for offshore wallets.

Rostec’s entry focuses on payments rather than market exposure, but both initiatives signal that large Russian institutions continue to integrate digital asset functions within local legal frameworks. 

Each entity controls its own distribution and compliance stack, reducing reliance on foreign exchanges while meeting internal audit requirements.

Rostec has not shared issuance caps or reserve management details for RUBx, although executives stated that the corporation will hold rubles equal to the total number of tokens in circulation. 

The company intends to disclose code and audit reports before activation, which will provide external developers and regulators with a clear view of the contract logic.

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July 4, 2025

Rostec, a major Russian state-owned defense conglomerate, has found a way to bypass traditional banking systems. It has revealed its intention to introduce its RUBx stablecoin alongside RT-Pay, a specialized platform designed for cryptocurrency-based transactions.

The RUBx token, which maintains a 1:1 peg to the Russian ruble, will function on the TRON blockchain network.

In a July 3 company statement, Rostec indicated that both the stablecoin and RT-Pay platforms would function as secure payment mechanisms for commercial entities and retail users.

Why the RUBx Stablecoin Could ‘Kill SWIFT’ for Russian Payments Despite US Sanctions

Rostec asserts that the platform operates in full compliance with Russian regulatory frameworks, including Central Bank requirements and anti-money laundering protocols designed to prevent terrorist financing.

“Each RUBx token is supported by genuine ruble-denominated obligations. This backing is legally secured. The token maintains a one-to-one ratio with the actual ruble. We plan to launch the system within this year, with Rostec acting as the primary operator,” stated Rostec Deputy General Director Alexander Nazarov.

Rostec has operated under comprehensive US sanctions since June 2022, implemented following Russia’s military invasion of Ukraine.

These restrictions, enforced by multiple nations, including the United States and European Union, target Rostec’s subsidiary companies and affiliated entities.

The sanctions seek to limit Russia’s military production capacity and its capabilities in weapons manufacturing.

Industry observers have characterized the RUBx stablecoin initiative as Russia’s strategic attempt to circumvent SWIFT, the international financial messaging system supervised by G-10 central banks, including the United States.

This interpretation gains credibility given that Russia’s Central Bank has explicitly stated in recent years that its primary objective in developing a digital ruble is to provide Russian corporations and financial institutions with “independence from SWIFT.”

Russia’s ‘Crypto Shift’: State-owned Firms Use Blockchain To Beat Dollar Dominance

Regarding the forthcoming RUBx stablecoin, Rostec confirmed that the RT-Pay platform will integrate with existing banking infrastructure, allowing digital payment processing and interaction with external cryptocurrency wallets and smart contracts.

The RUBx token, built on Justin Sun’s TRON blockchain, will have its source code made publicly available on GitHub and undergo verification and security auditing by CertiK, an independent international blockchain security firm.

Russia also appears to be increasingly embracing cryptocurrency as a method to circumvent international sanctions.

Recently, the Russian Agricultural Bank (RusAg) announced it is collaborating with the Bank of Russia to assess digital asset-based payment solutions for grain export transactions.

Irina Zhachkina, RusAg’s First Deputy CEO, characterized cryptocurrencies as a “practical alternative instrument” for international payments, particularly as sanctions continue restricting Russia’s access to conventional financial systems.

Russian grain exporters are facing mounting pressure from restrictions that affect logistics, shipping insurance, and access to the SWIFT banking network.

These constraints have increasingly complicated Russian companies’ ability to conduct transactions in US dollars or euros.

Both the RUBx stablecoin initiative and grain settlement mechanisms build upon Russia’s previous experience utilizing cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) for oil trade settlements with China and India.

State-owned enterprises are also simultaneously developing proprietary blockchain services.

For example, in March, Gazprom, Russia’s majority-state-owned energy giant, launched a series of tradable blockchain-powered “digital financial assets” (DFAs).

Similarly, Rostelecom, Russia’s largest telecommunications and digital services provider, issued two proprietary DFAs on the Moscow Exchange earlier that month.

Additionally, Russia appears to be leveraging cryptocurrency and Distributed Ledger Technology (DLT) as countermeasures against international sanctions.

In May, Russian media outlet RBC reported that the central bank had established regulatory guidelines governing the use of cryptocurrency by Russian firms in international trade agreements.

These regulations specify that digital currencies “must not be associated with securities issued by hostile issuers” and emphasize the necessity of engaging with projects that maintain a presence in “friendly countries.”

Tim Alper

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June 24, 2025

A Russian crypto mining firm executive has claimed Bitcoin (BTC) prices could climb to the $130k mark in the second half of summer 2025.

The claims came from Vasily Girya, the owner and CEO of the industrial player GIS Mining, the Russian Prime news agency reported. Girya said:

“The crypto industry remains attractive to market players. In a moderately positive scenario, the price of Bitcoin in the second half of summer could reach an all-time high of $115,000. It could target $130k”.

Bitcoin: $130k By End of Summer?

At the time of writing, Bitcoin prices are wavering around the $105k mark following a brief foray into $111,000 territory in mid May.

GIS Mining is one of Russia’s top 10 industrial miners, and mainly specializes in mobile units and mining hotel facilities. Per recent figures, the company’s mining capacity for Financial Year 2024 was 53 MW.

The country’s 10 biggest mining firms posted a collective total of $200 million in revenue in FY2024. Over half of this revenue came from the nation’s two biggest miners: BitRiver and Intelion.

Girya explained that the Russian mining sector is set for another burst of growth this year. He said that the sector was experiencing “record-breaking” demand for new crypto mining data centers with a capacity of up to 100 MW.

The mining chief added that demand for equipment capable of “energy-intensive blockchain computing” was also skyrocketing.

Insiders say that in the first half of 2025, demand for crypto mining hardware outstripped supply.

They claim that since Moscow legalized and began regulating crypto mining in 2024, more investors have entered the market.

The ruble’s rise against the dollar this year has also made crypto mining investment more viable for many.

Sandbox ‘Driving Russian Mining Investment’

Girya added that over the next two to three years, more of the coins mined in Russian jurisdiction will be used in the national economy.

He pointed to the Central Bank-run “experimental legal regime (ELR)” as evidence. The ELR is a crypto sandbox comprising exchange firms, cross-border trade companies, and Bitcoin miners.

The bank is using the ELR as a means of bypassing US, EU, and UK-led sanctions on Russia. The sanctions have effectively frozen Russian firms and banks out of dollar-denominated trade.

Central Bank officials want crypto miners to sell their coins to exchanges within the sandbox. These exchanges can then use their coins to facilitate cross-border trades conducted in BTC or other tokens.

Girya called the ELR a “powerful step toward the institutionalization of the crypto and digital currencies market.”

He said that it would help “increase the inflow of investments into this new class of assets.”

More Coal-powered Bitcoin Miners Heading to Siberia?

Meanwhile, the authorities in the Kuznetsk Basin, a major coal-mining region in Southwestern Siberia, have proposed a Bitcoin mining-themed solution to the problem of coal depreciation.

The news outlet Tsargrad’s Kemerovo Oblast branch reported that the region’s government is mulling a proposal to build crypto farms and greenhouse complexes near its coal mines.

The region’s Governor, Ilya Seredyuk, said the area’s coal could “be used to generate the energy needed to mine Bitcoin and other cryptoassets.”

Seredyuk said tests are now underway as miners conduct economic calculations to determine the profitability of the plan. He said the results would be published in around a month’s time.

The Governor said the BTC mining plan could help reverse a recent decline in coal mining. He also suggested that the heat released by burning coal could be used to heat greenhouses that house tropical plants – in one of the world’s most famously cold areas. He mused:

“Why not create a large botanical garden and cultivate plants that require warmth?”

Earlier this month, a Russian power firm announced the launch of the nation’s first bitcoin mining-focused closed-end mutual investment fund (CEF).

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…

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June 17, 2025

Russian prosecutors say they have shut down a 30,000 sqm crypto mining farm illegally operating in an industrial plant located on state-owned property.

Per a Telegram post from the official account of the Krasnoyarsk Krai Prosecutor’s Office, the “open-air” facility was located in the town of Nazarovo, some 240 km west of Krasnoyarsk, in Central Siberia.

The office said it had obtained a court order allowing bailiffs to raid the facility. The farm reportedly mined coins worth around 4.6 million rubles ($58,672) per month for its operators.

Crypto Mining Farm ‘Used Scores of Transformers and Generators’

Prosecutors explained that the operators had fenced off the facility with barbed wire. However, its location was nothing if not conspicuous. They wrote: “The farm was right out in the open air in the town’s industrial hub district.”

Officially, the site was registered as a “non-residential building” under the name of a management company.

However, when investigators conducted their raid, they found several transformers on the premises. They also discovered power generators, cooling equipment, and crypto mining rigs.

The management firm, prosecutors said, leased the property to a crypto mining firm, along with a “non-existent building.” The miner had reportedly connected their rigs to the city’s power grid.

Prosecutors said they received a tip-off from an energy provider. The latter reported that it had detected a high probability of emergency power outages at the facility.

When they investigated, the prosecutors discovered that the company had not obtained permission to operate power-receiving units or use state-owned land.

They also found that the miners were not complying with fire safety requirements, which constituted a public safety risk.

Operator Ignored Prosecutors’ Warnings

The office said it initially wrote to the firm to ask it to desist, adding that the operator “ignored” this request.

The prosecution service responded by petitioning a district court, which responded by banning all activity at the facility “until the violations are rectified.”

In February this year, a staffer at a Krasnoyarsk Krai energy provider was discovered taking bribes worth $7,380 from illegal crypto miners.

The staffer agreed to turn a blind eye to the miners’ operations and their illegal connections to the grid.

The same miners stole electricity worth about 9.4 million rubles ($119,592) from the Krasnoyarsk Krai energy system, investigators found.

According to the Federal Tax Service’s registry of crypto miners, Krasnoyarsk Krai is one of Russia’s top three crypto mining regions, along with the Irkutsk region and the Republic of Tatarstan.