Estonian and Latvian Crypto Exchanges Accused of Helping Russians Circumvent Sanctions
A recent investigation conducted by multiple European media outlets has revealed that crypto exchanges in Estonia and Latvia have been aiding Russians in bypassing sanctions and converting rubles into other currencies. The probe, carried out by Delfi, Siena.lt, Frontstory.pl, Paper Trail Media, Der Spiegel, ZDF, Der Standard, and others, analyzed around 300 cryptocurrency companies registered in Estonia and found numerous violations.
The violations included fraudulent schemes, money laundering, sanctions evasion, and financing of Russian organizations like the Wagner PMC. The investigation suggests that over €1 billion may have been laundered through Estonian crypto exchanges. One platform implicated in allowing Russians to evade sanctions is Coinsbit, an Estonian exchange that reportedly enabled users to convert rubles to Bitcoin without identity verification.
Accusations Against MEXC and Payeer
The investigation also mentions MEXC, an international cryptocurrency exchange that allegedly does not permit direct wallet withdrawals but allows clients to transfer virtual currencies to exchanges that facilitate cashing out in dollars and euros through European and American banking systems.
Additionally, the report highlights video tutorials in Russian on how to bypass sanctions using Payeer. Payeer operated openly in Estonia with millions of clients, many of whom were based in Russia. However, after Estonia tightened its crypto exchange regulations in 2022, several moved their operations to Lithuania.
MoneySwap OÜ’s Alleged Involvement
Another international crypto-firm mentioned is MoneySwap OÜ, which runs the Mercuryo platform. The investigation claims that the company established a new commercial structure called MoneyAmber UAB in Lithuania. However, a spokesperson from Mercuryo denies any business relations with Sberbank and takes a clear stance on the situation in Ukraine.
Hot Take: Crypto Exchanges Facilitating Sanctions Evasion
The recent investigation into crypto exchanges in Estonia and Latvia has shed light on their alleged involvement in helping Russians bypass sanctions. The probe revealed numerous violations, including money laundering, fraudulent schemes, and financing of Russian organizations. With over €1 billion potentially laundered through Estonian crypto exchanges, this investigation raises concerns about the effectiveness of regulations and compliance measures within the industry.
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