US Treasury lists BTC, ETH addresses tied to Russian sanctions evasion group

The United States Department of the Treasury's Office of Foreign Assets Control added two cryptocurrency wallets allegedly connected to a Russian sanctions evasion network as part of its list of Specially Designated Nationals.

In a February 1 announcement, OFAC saying I had added a Bitcoin (BTC) direction and an ether (ETH) addresses its list of sanctioned entities as part of a move to "methodically and intensively target sanctions evasion efforts around the world." Treasury said it would impose "full lockdown sanctions" on 22 people, included Jonatan Zimenkov, a Russian citizen with access to at least one BTC wallet and one ETH wallet.

According to the US Treasury, Jonatan is the son of arms dealer Igor Vladimirovich Zimenkov, who runs the sanctions evasion ring. The group was allegedly behind the supply of technology to a Russian company following the country's February 2022 invasion of Ukraine, as well as supporting certain "sanctioned state-owned Russian defense entities", including Rosoboroneksport and Rostec.

“Igor Zimenkov was designated pursuant to EO 14024 for operating or having operated in the defense and related materiel sector of the economy of the Russian Federation,” OFAC said. "Jonatan Zimenkov was also designated pursuant to EO 14024 as having materially aided, sponsored, or provided financial, material, or technological support, or goods or services to or in support of Igor Zimenkov."

Treasury is taking further action as part of the US strategy to methodically and aggressively attack Russia's sanctions evasion efforts around the world, and make it more difficult and costly for Russia's military-industrial complex. resupply Putin's war machine.https://t.co/q7a6DIxhZg

— Under Secretary Wally Adeyemo (@TreasuryDepSec) February 1, 2023

The BTC address provided by the Treasury presented no balance at time of publication. The ETH address as well contents no tokens, but it showed four transactions totaling about 5,463 ETH in early 2022, more than $16 million at the time.

Related: Kraken Reaches Settlement With US Treasury OFAC Over 'Apparent' Sanctions Violations

The US Treasury appears to have stepped up efforts to include crypto wallets in its sanctions efforts. the government department effectively banned US residents from of the use of the controversial Tornado Cash blender, an action that later sparked lawsuits from cryptocurrency advocacy groups and investors.