Russia is getting ready to authorize worldwide crypto funds however individuals concerned within the trade doubt this is able to permit the nation to bypass sanctions. On the identical time, the USA has been tightening the noose, lately concentrating on the usage of cryptocurrencies to dodge the monetary restrictions imposed by the West with new laws in Congress.
This week, Russian authorities introduced that they had began growing a mechanism for cross-border settlements with crypto property, with the aim to cut back the sanctions stress on the Russian economic system and commerce. The Ministry of Finance mentioned {that a} invoice legalizing such transactions has been agreed upon with the Central Financial institution of Russia.
Moscow is now in a rush to undertake laws for the issuance, circulation, and varied operations with digital currencies, notably funds for imports and exports restricted by Western sanctions over its invasion of Ukraine. In the meantime, the Home of Representatives of the U.S. Congress permitted a brand new invoice with measures aimed toward curbing the usage of cryptocurrencies to bypass them.
On this backdrop, specialists with data of the trade have shared with Russian media their opinions on how reasonable it’s to bypass the sanctions with the assistance of cryptocurrencies. The crypto web page of the Russian enterprise information portal RBC has compiled them in an article, the title of which begins with the expression “Nice Phantasm.”
The introduction of a crypto cost system beneath sanctions is strictly that, a giant phantasm, based on Maria Stankevich, director of growth on the digital asset trade Exmo (Exmo.com). She reminded that many state-owned firms have been discussing this selection again in 2014, amid earlier sanctions adopted after the Russian annexation of Crimea.
Mikhail Zhuzhzhalov, a senior lawyer on the Tomashevskaya & Companions regulation agency, agreed with the crypto government that the concept of overcoming monetary obstacles with the assistance of crypto will not be new. In 2018, Russian authorities thought of allowing worldwide firms established within the nation’s particular administrative areas to make use of digital cash in settlements with companions however the proposal was rejected by regulators who had a really destructive perspective on the time.
Regulatory stress is normally exerted on institutional gamers comparable to cryptocurrency exchanges, peer-to-peer platforms, and issuers of digital and tokenized property, Zhuzhzhalov famous. Whereas the circulation of cryptocurrencies itself will not be regulated, it’s simple to go after legally working licensed firms, he identified and emphasised:
If such market contributors are topics of unfriendly jurisdictions, they’re obliged to adjust to the sanctions. And if they’re situated in impartial international locations, then they might be pressured by secondary sanctions, as was lately the case with Turkish banks.
Two of 5 Turkish lenders working with Russia’s Mir playing cards determined to droop operations with the cost system broadly utilized by Russian vacationers visiting the nation. The transfer adopted clear indications earlier this month that Washington was more likely to impose sanctions on nations conducting transactions with Mir. Based on native media experiences in Turkey, a brand new Turkish-Russian cost system is within the making.
It’s nearly unattainable to cover giant volumes of transactions, Maria Stankevich admitted, and everybody who nonetheless desires to work with Russia utilizing cryptocurrencies will likely be positioned beneath sanctions. The variety of those that select to proceed to do this will lower, she is satisfied. Monitoring crypto transactions is even simpler than financial institution transfers, Stankevich added. “Within the present situations, you simply have to simply accept that interplay with the West will likely be restricted,” she concluded.
Do you suppose Russia will be capable of cut back the sanctions stress by using cryptocurrencies for cross-border funds? Share your ideas on the topic within the feedback part beneath.
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Scammers stole millions of dollars in cryptocurrency from remote job seekers in an elaborate scheme. New York Attorney General Letitia James has filed a lawsuit to recover over $2 million that she said was stolen from New Yorkers and others nationwide.
Scammers used unsolicited text messages to lure victims with promises of flexible, well-paying remote work opportunities. They claimed the job involved reviewing products online to generate market data. However, victims were told to open cryptocurrency accounts and maintain balances matching the price of products they were reviewing.
While victims believed they would receive their investments plus commissions, the funds were instead transferred into the scammers’ crypto wallets. The fake product reviews took place on a fraudulent website created as part of the scheme.
The lawsuit details seven people who were scammed. One victim, a New Yorker, lost over $100,000 while another victim from Florida lost over $300,000. These cases show the significant financial and emotional impact on the victims.
James’ office, working with Queens District Attorney Melinda Katz and her cryptocurrency unit, traced the stolen funds to specific digital wallets. Over $2 million in cryptocurrency has been frozen, ensuring it can be returned to victims.
“Deceiving individuals seeking remote work is cruel and unacceptable,” said James. “We’re committed to holding scammers accountable and recovering stolen funds.”
A federal grand jury in Georgia recently indicted three Russian nationals for their involvement in running illegal cryptocurrency mixer services that helped criminals launder money. The indictment, announced on January 7, 2025, involves Roman Vitalyevich Ostapenko, Alexander Evgenievich Oleynik, and Anton Vyachslavovich Tarasov. These individuals are accused of operating two online services called Blender.io and Sinbad.io, which helped criminals hide the source of their illegal funds.
A cryptocurrency mixer is a tool used to mix cryptocurrencies like Bitcoin, making it harder for authorities to trace the origin of digital money. These services are attractive to criminals involved in activities such as ransomware attacks and fraud, as they allow them to send funds anonymously.
Ostapenko and Oleynik were arrested in December 2024, while Tarasov is still on the run. The three men face serious charges related to money laundering and operating unlicensed financial businesses. If convicted, they could face up to 20 years in prison for laundering money and up to five years for running an unlicensed business. The indictment follows the earlier shutdown of the Sinbad.io service after it was seized by law enforcement in 2023.
Blender.io and Sinbad.io were both cryptocurrency mixers, meaning they offered a way to send digital money anonymously. For a fee, these services allowed criminals to send their funds without revealing where the money came from. This feature made these mixers attractive to those who wanted to hide stolen funds or profits from illegal activities, such as ransomware attacks, fraud, and even theft of virtual currencies.
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Blender.io operated from 2018 to 2022 and was known for its promise of anonymity. It advertised a “No Logs Policy,” meaning it claimed to have no records of transactions. The site also reassured users that no personal details were needed to use the service. This allowed criminals to send and receive Bitcoin without leaving a trace of their identity.
After Blender.io was shut down in 2022, the defendants launched Sinbad.io, which offered similar services. This service continued until law enforcement authorities took it down in November 2023, marking a significant victory in the fight against cybercrime. The shutdowns of both services were the result of coordinated efforts by authorities from several countries, including the U.S., the Netherlands, Finland, and Australia.
Both Blender.io and Sinbad.io were not only used by ordinary criminals but were also linked to state-sponsored hacking groups. For instance, Blender.io was used by North Korean hackers to launder funds stolen through cyberattacks. Similarly, Sinbad.io had connections to cybercriminals who targeted businesses and individuals. These cryptocurrency mixers served as a vital tool in helping these criminals profit from their illegal activities, making it harder for authorities to trace the stolen money back to its original source.
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The investigation into Blender.io and Sinbad.io showcases the power of international cooperation in tackling cybercrime. The indictment was made possible by the joint efforts of law enforcement agencies from different countries, including the U.S. Department of Justice, the FBI, the Netherlands’ Financial Intelligence Service, and Finland’s National Bureau of Investigation. Their collaboration helped track down the operators of these illegal services and ultimately led to their takedown.
In addition to the U.S. authorities, international agencies like the Australian Federal Police and Finland’s National Bureau of Investigation played key roles in the investigation. Their contributions were essential in identifying the people responsible for running these cryptocurrency mixers and disrupting their illegal activities.
The importance of international cooperation cannot be overstated. Cybercrime often crosses national borders, and without the efforts of multiple countries working together, it would be much harder to stop these crimes. The arrests of Ostapenko and Oleynik, along with the ongoing search for Tarasov, send a strong message to cybercriminals around the world: law enforcement agencies are committed to identifying and holding accountable those who operate illicit financial networks.
This case highlights how dangerous these cryptocurrency mixers can be in enabling serious criminal activities. By breaking down these networks, authorities are making it harder for criminals to profit from their wrongdoing, while also protecting public safety and national security.
To read the original order please visit DOJ website
A Wisconsin congressman will head the House Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence.
Bryan Steil, a Republican representing the 1st Congressional District in southeast Wisconsin, was appointed to the role Thursday.
His subcommittee’s jurisdiction includes things like mobile banking and non-fungible tokens, or NFTs. It’ll also be the first stop for legislation on cryptocurrency.
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Digital currencies have a murky federal regulatory status. That allowed President Joe Biden’s Securities and Exchange Commission Chair Gary Gensler to go after the crypto industry.
The industry responded by spending over $130 million in 2024’s election cycle through its PAC, Fairshake.
It spent $764,206 to independently help re-elect Steil, according to campaign finance database OpenSecrets.
In a statement, Steil said “technologies like financial apps, digital assets, and machine learning revolutionize our economy,” adding that he looks forward to continuing “to provide the rules of the road to move our economy into the future.”
Steil was appointed to his new role by House Financial Services Chair French Hill, R-Arkansas. Hill’s top campaign contributors include the CEOs of the crypto exchange platform Coinbase and the Charles Schwab Corporation.
One of his legislative priorities has been a bill that would set up clearer, crypto-friendly federal financial regulations, which passed the House with bipartisan support in May. He called Steil “instrumental” in passing that bill, and in overturning an SEC rule requiring crypto exchanges to list their digital assets as liabilities on their balance sheets.
Now, the Janesville native will oversee hearings and votes on new crypto-related legislation.
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