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On March 25, 2024, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 13 entities and two individuals for developing and operating blockchain-based services aimed at evading sanctions, including BitPapa and NetExchange.
In the following Media ReleaseOFAC stated “Many of the individuals and entities named today facilitated transactions or offered other services that helped OFAC-designated entities avoid sanctions…Russia is increasingly turning to alternative payment mechanisms to circumvent U.S. sanctions and continue financing its war against Ukraine “
Specifically, crypto exchange Bitpapa was sanctioned today for its role in transactions with OFAC-sanctioned entities, including Hydra market and Garantex. Similarly, NetExchange was fined for its role in facilitating payments to OFAC-sanctioned entities, including Hydra Market and various Russian banks.
While no crypto addresses are included in today’s tag updates, Elliptic is aware of thousands of crypto addresses associated with these entities, through various crypto assets.
Elliptic’s data highlights the connections between these sanctioned entities, as can be seen in the chart below.
Elliptic Investigator screenshot showing flows between NetExchange, Hydra market, BitPapa and Garantex
How we can help
Elliptic has taken immediate action to ensure that the addresses we identified associated with the entities included in the latest tags are available for review and tracking using our holistic, next-generation blockchain analytics technology.
Users will now be able to ensure that they do not inadvertently process funds originating from – or sent to – entities included in this tag. Elliptic continues to engage in preventive monitoring of high-risk crime areas. You can Contact us for further information or schedule a demo.
To keep up with the latest crypto crime trends and ensure you’re protected, you can access insights from our global policy and research teams at Elliptic blog.
