Treasury Sanctions Pro-Russia Groups Raising Funds With Crypto

In response to the ongoing Russian invasion of Ukraine, the US Treasury Department announced today that 22 individuals and two entities linked to the Russian government were added to the Office of Foreign Assets Control (OFAC) sanctions list.

The list includes entities that OFAC says supported Russia’s invasion, including Task Force Rusich, an alleged neo-Nazi paramilitary group that the agency says participated in combat alongside Russia’s military in Ukraine.

“Today’s action is being taken in coordination with those taken by the US Department of Commerce, which is imposing additional export control measures to further coordinate with partners and allies, as well as the US State Department, which is targeting Russia’s defense and high-tech industries,” it said the Ministry of Finance in a press release.

In addition to adding Task Force Rusich to its sanctions list, OFAC also published and blacklisted Bitcoin, Ether and USDT cryptocurrency addresses associated with the group.

Before Russia launched its invasion in February this year, crypto donations began pouring into the region as both sides turned to global backers, using digital assets to circumvent border restrictions.

In July, blockchain analytics firm Chainalysis reported that groups linked to Russia had raised $2 million in cryptocurrency, with the vast majority of funds sent in Bitcoin ($1.45 million) and Ethereum ($590,000), with “significant amounts” sent in Tether, Litecoin, and Dogecoin too.

In contrast, by March 2022, Ukraine received nearly $100 million in cryptocurrency donations, including Bitcoin, Ethereum, TRON, Polkadot, Dogecoin and Solana, according to blockchain analytics platform Elliptic. These donations included $5 million from Ethereum founder Vitalik Buterin.

OFAC stepped up its investigation and sanctioning of crypto addresses in recent months, including adding the coin mixing service Tornado Cash and several Ethereum addresses, citing the service’s use in money laundering.

“The United States will continue to take strong action to hold Russia accountable for its war crimes, atrocities and aggression,” Treasury Secretary Janet L. Yellen said in a statement. “As Ukraine pushes to defend its freedom, today we are taking steps to further undermine Russia’s ability to rebuild its military, hold perpetrators of violence accountable, and further isolate Putin economically.”

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