Ukraine cracks down on 60 crypto firms, 73 individuals over Russian sanctions evasion

Ukraine has expanded its economic pressure campaign against Russia by imposing sanctions on 60 crypto-linked companies and 73 individuals involved in financial schemes designed to bypass international restrictions.

The new sanctions, signed into law by President Volodymyr Zelenskyy on 6 July, freeze all Ukrainian assets of the designated entities and prohibit them from conducting business within the country.

The move highlights how digital assets are increasingly being used to sidestep traditional sanctions and fund wartime operations, particularly in the context of Russia’s ongoing invasion of Ukraine.

Crypto mining infrastructure under scrutiny

The sanctions specifically target a range of actors in the Russian digital finance ecosystem.

Among the 55 Russia-based companies affected, 19 are cryptocurrency mining operations, 17 operate digital financial asset information systems, and 19 provide support to Russia’s financial infrastructure, including payment hardware producers and international payment facilitators.

Five crypto exchange operators are included in the list.

This coordinated effort is aimed at dismantling digital payment and transfer networks that, according to Ukrainian intelligence and partner agencies, have enabled Russia to re-route funds into its military-industrial complex.

One unnamed company sanctioned in this package is reported to have transferred several billion dollars this year alone through crypto transactions, circumventing blocked traditional banking channels.

Foreign companies face asset freezes

The sanctions are not limited to Russian domestic entities. Foreign firms believed to be collaborating with sanctioned Russian institutions have also been included.

These include TOKENTRUST HOLDINGS LIMITED from Cyprus, EXMO RBC LTD from Kazakhstan, and three companies based in the United Arab Emirates.

Some of these foreign entities were already sanctioned by the US, adding an additional layer of pressure.

The decree also targets 73 individuals, ranging from executives and owners of the sanctioned firms to officials associated with the Central Bank of Russia.

These individuals are now subject to the same asset freeze and ban on economic activity in Ukraine, tightening the net around Russia’s alternative financing routes.

Crypto’s role in war

President Zelenskyy underscored that the move was not only aligned with Ukraine’s international partners but also stemmed from an independent national strategy.

He warned that as formal financial networks become increasingly inaccessible to Moscow, the Kremlin is leaning more heavily on decentralised digital assets for its operations.

According to the President, Russia’s growing reliance on cryptocurrency transactions has become a central concern for Ukrainian and allied intelligence agencies.

Zelenskyy also said that Ukraine plans to introduce further measures next week to fully synchronise with European Union sanctions packages.

These upcoming measures are intended to reinforce Ukraine’s alignment with European sanctions regimes, especially in the financial and digital asset sectors.

Digital assets linked espionage

The incident draws fresh attention to the broader implications of cryptocurrency usage in global conflicts.

Digital assets, which are decentralised by design and often operate beyond the reach of conventional financial surveillance, are proving to be potent tools not only for evading economic sanctions but also for facilitating espionage.

This latest development in Ukraine’s financial crackdown reflects a shifting landscape where cryptocurrencies, once heralded for their innovative potential, are being increasingly weaponised in geopolitical struggles.

As regulatory frameworks evolve, governments and international bodies are being compelled to monitor crypto flows as vigilantly as they do traditional monetary channels.

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