Crypto Exchanges Bypass Russia Sanctions via Obfuscation

Russian crypto exchanges aid sanctions evasion via cross-border payment channels.

  • Russian-facing crypto exchanges continue to enable sanctions evasion by providing cross-border payment channels shielded from traditional banking oversight.
  • Several platforms, including sanctioned entity Bitpapa and others like ABCeX and Exmo, use wallet obfuscation techniques to mask transaction origins and high-risk counterparties.
  • Blockchain evidence contradicts Exmo‘s claim of exiting Russia and reveals shared wallet infrastructure with its Russian-facing spin-off.
  • Services like Aifory Pro explicitly facilitate bypassing international service restrictions for Russian users and have direct financial links to an Iranian exchange.

Cryptocurrency exchanges with operational ties to Russia are actively undermining international sanctions by providing shielded transaction routes, according to blockchain data analysis. These platforms facilitate the conversion of rubles into cryptoassets for cross-border payments without traditional banking intermediaries.

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Consequently, Russian entities can move funds overseas and convert them to local currency through foreign brokers. Despite growing regulatory pressure, many exchanges still process high volumes of crypto linked to sanctioned entities.

Bitpapa, a UAE-registered P2P exchange, was sanctioned by U.S. OFAC in March 2024 for its role in evasion. Data shows approximately 9.7% of its outgoing crypto funds went to OFAC-sanctioned targets.

ABCeX has processed at least $11 billion in cryptoassets, with significant amounts sent to sanctioned exchanges. It operates from a Moscow office previously occupied by the sanctioned exchange Garantex.

However, Exmo presents a case where claimed geographic separation is contradicted by on-chain evidence. Blockchain analysis proves Exmo.com and its Russian-facing spin-off Exmo.me share identical custodial wallet infrastructure.

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Rapira, a Georgia-incorporated exchange with a Moscow office, has conducted over $72 million in direct transactions with the sanctioned exchange Grinex. Its Moscow offices were reportedly raided in a capital flight investigation.

Meanwhile, Aifory Pro specializes in cash-to-crypto services in Moscow, Dubai, and Türkiye. It explicitly helps users bypass service restrictions by offering virtual payment cards funded by USDT balances.

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