Crypto addresses linked to Russian neo-Nazi paramilitary group added to US blacklist

Crypto plays an important role in shaping modern warfare. It is used to buy weapons and boost the morale of combatants – and in this scenario – mercenaries who are only out there to contribute to an ongoing bloodbath.

On Friday, the US Treasury Department announced that 22 individuals and two businesses with ties to the Russian government had been added to the Office of Foreign Assets Control’s blacklist in response to the ongoing Russian military offensive against Ukraine.

The Office of Foreign Assets Control (OFAC) has included an alleged neo-Nazi paramilitary group that it claims participated in military offensives with Russia’s military in Ukraine on its list of sanctioned entities for their support of Russia’s ongoing invasion.

OFAC has added five cryptocurrency addresses to its list of sanctioned entities, all of which are associated with a Russian organization known as “Task Force Rusich.”

According to The Times, the Rusich – a group of neo-Nazi Russian mercenaries led by a commander who has boasted of tearing the ears off enemy bodies – have been stationed in eastern Ukraine to fight alongside their Russian military comrades.

Image: Protocol

Prevent crypto from reaching Russian mercenary hands

According to data collected by blockchain analytics firm Nansen, thousands of dollars worth of cryptocurrency were sent to these addresses.

The latest action is coordinated with the efforts of the US Department of Commerce and the US State Department.

While the State Department goes after Russia’s defense and high-tech businesses, DOC imposes additional export control measures in coordination with relevant departments.

US Treasury Secretary Janet Yellen has stated that the sanctions were implemented in an attempt to make Russia pay for the “war crimes, atrocities and aggression” it has committed.

The sanctions list is also intended to isolate Russian President Vladimir Putin financially and stop Russia from using cryptocurrency or other means to pay its military. The group’s Bitcoin, Ether and USDT were associated with specific addresses.

Bitcoin is top crypto flowing through entities with Russian ties

Chainalysis, a blockchain analytics firm, stated in July that organizations with Russian connections had collected $2 million in cryptocurrencies, the majority of which had been sent in Bitcoin ($1.45 million) and Ethereum ($590,000). Tether, Litecoin and Dogecoin were all used to send significant sums.

Russia has been forced to develop other payment and transaction systems as a result of the US Treasury Department and other government agencies cracking down on the flow of cryptocurrency into the nation.

Treasury Secretary Janet L. Yellen issued the following statement:

“The United States will continue to take strong action to hold Russia accountable for its war crimes, atrocities, and aggression … we are taking steps to further impair Russia’s ability to rebuild its military, hold perpetrators of violence accountable, and further isolate Putin economically. “

Meanwhile, the United Kingdom’s Office of Financial Sanctions Implementation (OFSI) decided last week by Her Majesty’s Chancellor of the Exchequer that crypto exchanges must notify all cryptocurrencies suspected of being used to circumvent Russian sanctions.

OFSI announced the “freezing of financial and economic resources” against anyone working to destabilize or undermine Ukraine’s sovereignty and aid the Russian government.

Crypto total market cap at $927 billion on the daily chart | Source: TradingView.com

Featured image from The Times, Chart: TradingView.com