Elliptic is a company dedicated to preventing money laundering and sanctions evasion through crypto-assets. They have aided in the development of cryptocurrency marketplaces and enabled the business to thrive as a result of their efforts.
The conflict in Ukraine has shown that powerful technology like cryptocurrencies may be utilized for both good and bad. The Ukrainian government’s fundraising effort has demonstrated how crypto may cross boundaries. Trading volumes are surging, indicating that regular Russians are circumventing harsh capital controls and leaving the depreciating ruble for the safe haven of crypto assets.
Crypto funding, on the other hand, has been employed in the past by Russian-backed forces. There is also a serious possibility that Russia will use crypto assets to evade sanctions by engaging in state-sponsored cybercrime, wealth concealment, and possibly crypto mining. Iran and North Korea have demonstrated how it can be used to mitigate their impact. When a country is subjected to harsh sanctions, it will seek out any and all means of generating revenue and evading the restrictions.
Elliptic’s response to countries evading sanctions via crypto
Through data gathering, analysis, and investigations, Elliptic has redoubled its efforts to empower the financial services industry to combat Russian sanctions evasion.
From Elliptic’s research, they have found over 400 virtual asset service providers (VASPs) – largely exchanges – where Rubles can be used to buy crypto assets. They’ve also linked a million cryptocurrency asset addresses to these companies. The majority of these services are unregulated and can be utilized without revealing your identity.
They’ve linked over 15 million crypto addresses to criminal activity with a Russian connection. Businesses and exchanges that deal in digital assets can filter transactions and wallets for this type of activity and ensure that the proceeds aren’t laundered.
Several hundred thousand crypto addresses have been linked to sanctioned individuals based in Russia, according to Elliptic. This includes addresses that they have been able to identify with these perpetrators through our own investigation, in addition to those on sanctions lists.
Elliptic is also looking into crypto asset wallets tied to Russian authorities and oligarchs who are subject to sanctions. They’re also working with government agencies and other groups to make sure that individuals who enabled the invasion of Ukraine can’t hide their money with crypto assets.