The Office of Foreign Assets Control of the United States Department of the Treasury has added two digital currency wallets allegedly connected to a Russian sanctions evasion network as part of its list of Specially Designated Nationals.
In a Feb. 1 notice, OFAC said it had added one Bitcoin (BTC) (BTC) address and one Ether (ETH) address to its list of sanctioned entities as part of a move to “methodically and intensively target sanctions evasion efforts around the globe.” Treasury stated it would impose “full blocking sanctions” on 22 individuals, including Jonatan Zimenkov, a Russian national with access to at least one Bitcoin wallet and one Ethereum (ETH) wallet.
Reports by the United States Treasury, Jonatan is the son of arms dealer Igor Vladimirovich Zimenkov, who runs the sanctions evasion network. The team was allegedly behind supplying technology to a Russian company following the country’s invasion of Ukraine in February 2022, likewise as supporting certain “sanctioned, state-owned Russian defense entities,” including Rosoboroneksport and Rostec.
“Igor Zimenkov was designated pursuant to E.O. 14024 for operating or having operated in the defense and related materiel sector of the Russian Federation economy,” stated OFAC. “Jonatan Zimenkov was likewise designated pursuant to E.O. 14024 for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Igor Zimenkov.”
Treasury is taking more action as part of the United States intend to methodically & intensively target Russia’s sanctions evasion efforts around the world, and to make it harder & costlier for Russia’s military-industrial complex to re-supply Putin’s war machine.https://t.co/q7a6DIxhZg
— Deputy Secretary Wally Adeyemo (@TreasuryDepSec) February 1, 2023
The Bitcoin address provided by Treasury showed no balance at press time. The Ethereum (ETH) address likewise contained no crypto tokens but showed four transactions totaling approximately 5,463 Ethereum (ETH) in early 2022 — greater than $16 Million at the time.
The United States Treasury appears to have stepped up efforts to include cryptocurrency wallets in its sanctions efforts. The Government department effectively barred United States residents from using the controversial Tornado Cash mixer, an action that thereafter prompted lawsuits from cryptocurrency advocacy groups and investors.
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