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U.S. Treasury Imposes Sanctions on Russian Financial and Tech Entities: Detailed Overview of Designated Persons and Companies

The Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced on the 25th of March the sanctioning of thirteen entities and two individuals involved in the financial services and technology sectors of the Russian Federation economy. These sanctions target individuals and companies facilitating the evasion of U.S. sanctions, particularly those supporting Russia's ongoing conflict with Ukraine.


U.S. Treasury Imposes Sanctions on Russian Financial and Tech Entities: Detailed Overview of Designated Persons and Companies

Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson, emphasized the Kremlin's use of alternative payment mechanisms to bypass U.S. sanctions and finance its war against Ukraine. He stated, "Treasury will continue to expose and disrupt the companies that seek to help sanctioned Russian financial institutions reconnect to the global financial system."


Let's delve deeper into the details of each sanctioned person or entity:

  1. Joint Stock Company B-Crypto (B-Crypto): This Moscow-based fintech company has collaborated with OFAC-designated Rosbank to enable cross-border settlements for Russian exporters using virtual currencies. B-Crypto's operations in the financial services sector of the Russian Federation economy led to its designation by OFAC.

  2. Obshchestvo S Ogranichennoy Otvetstvennostyu Sistemy Raspredelennogo Reyestra (Masterchain): Operating in Moscow, Masterchain has agreements with various OFAC-designated Russian banks, including VTB Bank and the Central Bank of Russia, to issue digital financial assets. Its involvement in the financial services sector led to its designation by OFAC.

  3. Obshchestvo S Ogranichennoy Otvetstvennostyu Laitkhaus (Laitkhaus): Another Moscow-based fintech company, Laitkhaus, has collaborated with OFAC-designated Sberbank and VTB Bank to issue, exchange, and transfer digital financial assets, resulting in its designation by OFAC.

  4. Obshchestvo S Ogranichennoy Otvetstvennostyu Atomaiz (Atomaiz): Atomaiz, a registered digital financial asset operator in Moscow, has worked on tokenizing precious metals and diamonds for Russian companies. Its partnerships with OFAC-designated entities like Rosbank and Sovcombank led to its designation by OFAC.

COMPANY FORMATION &   DOMICILATION SERVICES


  1. Tokentrust Holdings Ltd.: Based in Cyprus, Tokentrust Holdings Ltd. is the majority shareholder of Atomaiz, thus enabling its operations in the financial services sector of the Russian Federation economy, leading to its designation by OFAC.

  2. Obshchestvo S Ogranichennoy Otvetstvennostyu Veb3 Tekhnologii (Veb3 Tekhnologii): This Moscow-based technology company provides blockchain solutions and platforms to clients, including OFAC-designated entities like Sberbank and Alfa-Bank, resulting in its designation by OFAC.

  3. Obshchestvo S Ogranichennoy Otvetstvennostyu Veb3 Integrator (Veb3 Integrator): Similar to Veb3 Tekhnologii, Veb3 Integrator offers blockchain solutions within the Russian financial sector, leading to its designation by OFAC.

  4. Igor Veniaminovich Kaigorodov: As the majority shareholder at both Veb3 Tekhnologii and Veb3 Integrator, Kaigorodov's involvement in the technology sector of the Russian federation economy led to his designation by OFAC.

  5. Obshchestvo S Ogranichennoy Otvetstvennostyu Tsentr Obrabotki Elektronnykh Platezhey (TOEP): Operating as Netexchange and Netex24, TOEP, based in Moscow, operates a virtual currency exchange facilitating transactions involving rubles and virtual currencies for OFAC-designated entities like Sberbank, Alfa-Bank, and Hydra Market, leading to its designation by OFAC.

  6. Timur Evgenyevich Bukanov (Bukanov): Bukanov, the owner and director of TOEP, facilitated the operations of the company in the financial services sector of the Russian Federation economy, leading to his designation by OFAC.

  7. Bitfingroup OÜ (Bitfingroup): An Estonian company, Bitfingroup, owned solely by Bukanov, was designated for its association with him and its role in the financial services sector of the Russian Federation economy.

  8. Bitpapa IC FZC LLC (Bitpapa): Operating as a peer-to-peer virtual currency exchange, Bitpapa has conducted transactions with OFAC-designated Russian entities like Hydra Market and Garantex, resulting in its designation by OFAC.

  9. Crypto Explorer DMCC (Crypto Explorer): Operating as AWEX, Crypto Explorer operates virtual currency exchanges in Russia and the UAE, facilitating conversions between virtual currencies, rubles, and UAE dirhams, leading to its designation by OFAC.

  10. Obshchestvo S Ogranichennoy Otvetstvennostyu Kripto Eksplorer (OOO Kripto Eksplorer): A Russian company solely owned by Crypto Explorer, OOO Kripto Eksplorer was designated for its association with Crypto Explorer.

  11. Joint Stock Company Echelon Technologies (Echelon Technologies): This Moscow-based company, owned by Joint Stock Company Echelon Union for Science and Technology, which is an OFAC-designated entity, sells technology products, leading to its designation by OFAC.

  12. Autonomous Non-Profit Organization of Additional Professional Education Echelon Training Center and Limited Liability Company Key Information Systems: These Moscow-based companies, working with and sharing an address with OFAC-designated Echelon Union, were designated by OFAC for their operations in the technology sector of the Russian Federation economy.

  13. Limited Liability Company Echelon Innovations (Echelon Innovations): Echelon Innovations, along with Limited Liability Company Project Consulting Bureau Echelon (Project Bureau Echelon) and Limited Liability Company Cybersecurity Laboratory (Cybersecurity Laboratory), lists Echelon Union as the sole or majority shareholder, resulting in their designation by OFAC.


The sanctions imposed entail blocking all property and interests in property of the designated persons within the United States or under the control of U.S. persons. Additionally, entities owned or controlled by the designated persons are also subject to blocking. Foreign financial institutions engaging in significant transactions involving Russia's military-industrial base risk facing sanctions by OFAC.


OFAC reiterated its commitment to implementing sanctions as a means to encourage positive behavioral changes and highlighted the process for seeking removal from the sanctions list.


These latest sanctions reflect the ongoing efforts of the United States and its allies to counter Russian aggression and prevent the exploitation of financial systems for illicit purposes.

By fLEXI tEAM





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