Ukraine Sanctions Russian Crypto Networks in Major Crackdown on War Financing

Ukraine has rolled out a precision strike on dozens of Russian-backed crypto operatives, freezing the assets of 60 firms and 73 individuals suspected of enabling Moscow’s war through digital finance.

President Volodymyr Zelenskyy signed the decree on Sunday, freezing assets and sanctioning economic activity for the companies and individuals allegedly tied to Russian financial schemes, many involving crypto.

Zelenskyy called it “a special sanctions package” that also targets Russia’s broader financial infrastructure, including payment equipment manufacturers and intermediaries for international transactions.

“Just through one single company—now included in the sanctions list, and only since the beginning of this year, that is, prior to the sanctions being imposed—the Russians funneled several billion dollars, primarily for the needs of their military-industrial complex,” Zelenskyy said Sunday. “Of course, we will shut down all such schemes.”

The sanctions point to the growing alarm over how Russia, cut off from much of the global financial system, is increasingly exploiting crypto to sustain its war effort.

The decree, introduced at the initiative of Ukraine’s National Bank, targets 19 of Russia’s largest crypto miners, 17 operators of digital asset systems, and five crypto exchanges involved in sanctions evasion.

LLC A7, a sanctioned firm, released a ruble-pegged stablecoin in February aimed at cross-border transactions.

Other blacklisted entities include United Financial Technologies and Bifit, a software provider for Russian banks under sanctions, Vladyslav Vlasiuk, Zelenskyy’s Commissioner for Sanctions Policy, posted on Facebook.

Five foreign companies were also sanctioned, including TokenTrust Holdings (Cyprus) and EXMO RBC LTD, a Kazakhstan-based operator of the EXMO.me exchange active in Russia, Belarus, and Kazakhstan.

UAE-based firms AWX Solutions, Crypto Explorer, and Bitpapa, already under U.S. sanctions, were blacklisted for facilitating crypto transactions for Russian users.

Last year, Chainalysis Director of Intelligence Solutions Valerie Kennedy said Russia was “the loudest and possibly most pervasive country” using crypto to skirt sanctions, citing stealthy non‑KYC services and new national laws facilitating crypto settlements.

The blockchain analytics firm reported in February that sanctioned jurisdictions received $15.8 billion in crypto in 2024, roughly 39% of all illicit flows, with Russia, Iran, and North Korea leading the pack.

A recent report from the Financial Action Task Force (FATF) and blockchain investigators has also warned that crypto is enabling sanctioned states like Russia, Iran, and North Korea to finance weapons programs, drone production, and cyber operations.

The latest crackdown comes amid heightened battlefield tensions, as both sides escalate military and economic pressure in what has become a grinding war of attrition, as per recent media reports.

Over the past week, Russian forces have intensified assaults along the Pokrovsk and Kupyansk fronts, while Ukraine has stepped up long-range strikes targeting military infrastructure inside Russian territory.

Ukrainian officials also warned of increased Russian drone and missile attacks on Kharkiv and Sumy regions, adding to fears of a new offensive push.