US Treasury Targets Russian Crypto Networks with New Sanctions

Key Points

1. OFAC announced sanctions on crypto wallets associated with Garantex and the ruble-backed stablecoin A7A5, accusing them of helping Russia bypass financial sanctions.

2. Garantex, once licensed in Estonia, had its web domain seized and $26 million frozen by US authorities in March 2025 before ceasing operations.

3. The A7A5 stablecoin, developed by Kyrgyzstan-based Old Vector, was supported by Russia’s Promsvyazbank (PSB) and implicated Moldovan politician Ilan Shor.

4. Blockchain analysis firm Elliptic reported that A7A5 token transactions exceeded $51 billion by July 2025, facilitating payments for Russian companies outside traditional banking.

5. US Treasury Undersecretary John K. Hurley emphasized the sanctions aim to prevent Russia from using cryptocurrency exchanges to evade financial restrictions.