Blockchain forensics and security firm Elliptic has been cooperating with authorities around the world to unearth dubious crypto wallets that are allied with sanctioned organizations or individuals.
Elliptic, based in the UK, has unearthed a wallet that has significant holdings of crypto-asset that could turn out to be in millions and may be connected to Russian oligarchs and officials facing sanctions.
Tom Robinson, the co-founder of Elliptic, said crypto might be utilized for large-scale evasion of sanctions. But it is widely testified and also accepted generally that Russia could avoid pivoting crypto resources to bypass sanctions.
Elliptic’s report didn’t give an exact value of cryptos in this hidden wallet that was discovered. Neither did it explain the assets’ nature that was held in it. Robinson said that the magnitude of the crypto being used is questionable.
Elliptic Says Not Possible Form Russian Oligarchs To Avoid Sanctions
The Russian Oligarchs can’t avoid sanctions and move their total assets into crypto. Cryptos are traceable, and while they can be convenient for evading sanctions, it is not a magic carpet to total evasion.
Elliptic identifies over 400 cryptos that allow users to trade in digital assets anonymously using rubles. The firm has also been able to connect over 15M addresses of cryptos to criminal activity traced to a Russian origin.
The Elliptic co-founder further stated that ruble-related activities on several of such services surged just as war was imminent in Europe. One such crypto provider has evaded calls to restrict or refuse services, or even conform to sanctions. This company anonymizes ERC-20 and Ethereum transactions.
Robinson says that there is a very high level of compliance. Numerous exchanges that deal in high-value transactions such as Binance and Coinbase have agreed to requests for sanctions from regulators around the globe.
Elliptic has also been at the forefront in tracking down crypto donations that support the humanitarian efforts in Ukraine. Around $63.8M has been sent to the government in Ukraine.