Elliptic Report: Russia-Linked Crypto Exchanges Evade Sanctions Using Stablecoins

Sanctioned Exchanges and Transaction Traffic A new report published by blockchain analytics firm Elliptic has revealed that Russia-linked cryptocurrency exchanges continue to facilitate transactions for sanctioned entities.
These platforms allow users to move funds outside of traditional banking channels, enabling cross-border transfers and the circumvention of global restrictions.
The report highlights several platforms with billions of dollars in transaction volume, including Bitpapa, ABCeX, Rapira, and Aifory Pro.
Bitpapa, which was added to the U.S.
Treasury Department’s (OFAC) sanctions list in March 2024, is estimated to have approximately 9.7% of its crypto flows directed to sanctioned entities.
A significant portion of these transactions is allegedly linked to the Russia-based Garantex exchange, with the platform frequently changing wallet addresses to avoid detection.
Another platform, Aifory Pro, reportedly offers cash-to-crypto exchange services in Moscow, Dubai, and Turkey.
Such services facilitate the conversion of physical cash into digital assets, allowing them to enter international circulation more easily.
Stablecoin Usage and Global Impact The increasing use of stablecoins to evade sanctions is a primary focus of the report.
Tether (USDT) and a stablecoin pegged to the Russian ruble, known as A7A5, have become key tools for bypassing Western sanctions.
Transactions involving A7A5 have reportedly exceeded $100 billion.
Following Russia's invasion of Ukraine, the European Union froze approximately $250 billion in Russian assets, while the United Kingdom froze $35 billion.
Despite increased oversight, cryptocurrency infrastructure is being actively used to breach these restrictions and maintain capital mobility.