- The U.S. Department of Treasury has sanctioned thirteen firms and two individuals under fresh scrutiny.
- The sanctioned parties allegedly developed or offered virtual asset services linked to Russia.
- The Treasury Department believes Russia is turning to alternative payment mechanisms to circumvent U.S. sanctions.
The U.S. Department of Treasury has sanctioned thirteen firms and two individuals in a fresh round of scrutiny. The sanctioned parties allegedly developed or offered virtual asset services linked to Russia, circumventing bans on such activities.
In a recent statement, Brian E. Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, noted that Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions. Nelson affirmed that the Treasury will continue to expose and disrupt the companies that seek to help sanctioned Russian financial institutions reconnect to the global financial system.
The sanctioned companies include Moscow-based fintechs B-Crypto, Masterchain, Atomaiz, Veb3 Tekhnologii, and Veb3 Integrator, and Cyprus-based Tokentrust, a majority-owner of Atomaiz.
Bloomberg reported that Igor Veniaminovich Kaigorodov, the majority owner of Veb3 Tekhnologii and Veb3 Integrator, and Timur Evgenyevich Bukanov, the owner of TOEP, were also on the sanctioned list.
In another development, CommEX, a recently established crypto exchange that took over Binance’s Russian operation, announced it would shut down soon. In a recent statement, the crypto exchange noted that it is engaging in a systematic shutdown process beginning on March 25, 2024. The exercise will continue until May 10, when its website will become inactive.
Meanwhile, CommEX cited “strategic planning adjustments” as the reason for the imminent shutdown. The firm advised users to close positions promptly, withdraw assets, and manage their assets on the platform.
The Russian Binance replacement halted new user registrations and Asset Transfer from Binance on March 25. It also discontinued fiat and cryptocurrency deposit services on the same day. Subsequently, it would suspend the opening of positions for Simple Futures & Futures Trading, along with the termination of other services.
CommEX warned that any user with asset balances after the May 10 deadline would pay a 1% penalty of the asset’s worth for each extra day.
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