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IRS, Chain Analysis Helps Ukraine Track Russians Using Crypto To Avoid Sanctions – Bitcoin News
The US Internal Revenue Service (IRS) said it is working closely with Ukraine to help them track crypto transactions by Russian sanctions evaders. The agency provides the Ukrainians with access to a chain-light tool as well as specialized training for Ukrainian law enforcement.
IRS offers Ukraine tools from Chain Analytics to trace Russian blockchain transactions
The criminal investigation division of the US Internal Revenue Service announced it is stepping up cooperation with counterparts abroad as part of efforts to identify individuals and entities evading Western sanctions.
The agency revealed it is working with blockchain forensics firm Chainalysis and Ukrainian investigators to track down Russians who may be using cryptocurrencies to hide their assets amid financial restrictions imposed over Moscow’s invasion of Ukraine.
According to a Bloomberg report, the IRS is sponsoring Ukraine’s access to a chain analysis tool that facilitates crypto-related probes. It has also organized training sessions for the country’s law enforcement, both virtual and in person, on tracking blockchain transactions.
This effort is expected to improve information sharing and case development between the United States and Ukraine, the revenue service explained in a statement. Commenting on the collaboration, IRS Chief of Criminal Investigations Jim Lee emphasized:
Sharing tools protects not only the US financial system, but also the global economy.
Authorities around the world have issued warnings that sanctioned countries such as Russia and Iran may use crypto to circumvent international restrictions. Another Bloomberg report recently revealed that the world’s largest crypto exchange, Binance, is facing an investigation by the US Department of Justice over suspected violations of Russia sanctions.
According to Michael Gronager, co-founder and CEO of Chainalysis, crypto is still too illiquid to support mass sanction evasion, but this is happening on a smaller scale. Efforts to find out how much Russian oligarch money flows through Ukraine continue, he added.
Gronager also noted that cryptocurrency is playing a unique role in the war through donations to support both sides. Around $5 million has been transferred in this way to approximately 100 pro-Russian groups in the past year, he pointed out as an example. Most crypto assets sent from wallets sponsoring Russia reach centralized exchanges, research showed in March.
Ukraine and the US have worked together on other crypto-related fronts. Backed by US law enforcement, Ukrainian police disrupted a network of crypto exchange services suspected of laundering criminal proceeds from ransomware attacks and fraud schemes, and announced the shutdown of 9 such platforms earlier in May.
Do you think the US and Ukraine will further expand their cooperation in tracking Russian crypto transactions? Tell us in the comments section below.
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