US and UK investigate Russia's $20bn cryptocurrency transactions

The United States and the United Kingdom have commenced an investigation into cryptocurrency transactions worth over US$20 billion conducted through a Russian stock exchange.

Source: Bloomberg

Details: "The US and UK are reviewing more than $20 billion of cryptocurrency transactions that passed through a Russia-based virtual exchange, according to people familiar with the matter, as part of allied efforts to crack down on the sanctions evasion that’s supporting Vladimir Putin’s war in Ukraine," Bloomberg noted.

The payments in question were made through the Moscow-based crypto exchange Garantex using the dollar-pegged cryptocurrency Tether.

It is noted that these transfers took place after the US and UK imposed sanctions on Garantex on suspicion of facilitating financial crimes and illegal transactions in Russia.

"The Biden administration has been attempting to squeeze crypto exchanges like Garantex since the early days of the war. The $20 billion of transactions would represent one of the biggest breaches of the sanctions imposed on Russia since its start," Bloomberg stressed.

The agency's sources warned that investigations were underway and it was too early to draw conclusions considering the complexity and opacity of cryptocurrency transactions.

Garantex has previously claimed that it is committed to preventing its platform from being used for illegal activities and has been actively cooperating with the authorities in Europe and the US until sanctions were imposed on it.

Background: On 25 March, the US Treasury Department's Office of Foreign Assets Control (OFAC) imposed sanctions on 13 entities and two individuals involved in the financial services and technology sectors of the Russian economy.

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