UK Sanctions 3 Crypto Firms Over Russia Ties
Key Summary
The UK has sanctioned three crypto firms, Cryptomus, Heleket, and TokenSpot, over their ties to Russia, following a report by blockchain analytics firm Chainalysis that linked them to illicit financial flows and networks. The sanctions target parts of the crypto infrastructure used to move money through crypto, including payment services and exchanges connected to a ruble-backed token network. Chainalysis found that Cryptomus and Heleket received funds from over 15,000 illicit counterparties, exceeding those received by all mixing services combined. The UK has also sanctioned other Russian entities and individuals, bringing its coverage to over 90% of Russia's oil production capacity.
UK Targets Russia Ties in Crypto Sanctions
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Introduction
The UK has taken action against three crypto firms over their ties to Russia, following a report by blockchain analytics firm Chainalysis.
Cryptomus, Heleket, and TokenSpot have been sanctioned over their connections to illicit financial flows and networks associated with Russia's sanctions evasion.
The sanctions target parts of the crypto infrastructure used to move money through crypto, including payment services and exchanges connected to a ruble-backed token network.
Chainalysis found that Cryptomus and Heleket received funds from over 15,000 illicit counterparties, exceeding those received by all mixing services combined.
The firm suggested that the closure of Russian exchange Garantex may have contributed to the increase in illicit counterparties linked to the two processors.
Cryptomus had also advertised crypto payments and conversions without know-your-customer (KYC) or know-your-business (KYB) checks on Russian-language cybercrime forum BHF and the Nulled forum, Chainalysis reported.
TokenSpot's connections followed a different route, with Chainalysis tracing funds to a shared HTX deposit address that received more than $308 million.
The firm identified links to addresses associated with Moldovan businessman Ilan Shor and the A7A5 instant swapper, which exchanges ruble-backed tokens for dollar-backed stablecoins.
Earlier Cases
CryptoPotato reported earlier that Grinex was set up in Kyrgyzstan in December 2024 and presented as a replacement for Garantex, which processed over $100 billion in transactions while sanctioned.
In April, Grinex suspended operations after a hack that took more than 1 billion rubles, about 13.74 USDT, and TokenSpot reportedly went offline around the same time.
HTX, formerly Huobi, was sanctioned by the UK in May for channeling more than $1.5 billion to Russia.
The UK also sanctioned oil companies Zarubezhneft and INK Capital, bringing its coverage to more than 90% of Russia's oil production capacity, along with the bank Stolichny Kredit and twelve shadow fleet tankers.
Seventeen individuals and entities importing machine tools, electronics and materials allegedly used in ballistic missiles and drones were named too.