Elliptic Flags Russian Crypto Platforms Accused of Bypassing Sanctions
A new report from blockchain analytics firm Elliptic claims that several Russia-linked cryptocurrency exchanges are helping users move funds beyond the reach of Western financial sanctions.
According to the study, five trading platforms — most of which are not formally sanctioned — continue to facilitate large-scale crypto transactions outside the traditional banking system.
The findings come at a sensitive time. European policymakers are reportedly weighing stricter controls, including the possibility of a blanket ban on crypto transactions involving Russia, amid concerns that new platforms are emerging to replace those already targeted.
Key Findings at a Glance
Five Russia-linked crypto exchanges were identified as potential sanctions workarounds.
Only one — Bitpapa — is currently under U.S. sanctions.
Several unsanctioned platforms processed significant transactions tied to restricted entities.
Enforcement actions appear to be shifting activity between platforms rather than stopping it altogether.
Bitpapa and Sanctioned Activity
Of the exchanges reviewed, only the peer-to-peer marketplace Bitpapa has been formally sanctioned.
In March 2024, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated Bitpapa over allegations of sanctions evasion. Elliptic’s analysis found that roughly 9.7% of the platform’s outgoing transactions were linked to sanctioned entities. The firm also noted that Bitpapa frequently rotated wallet addresses, making transaction monitoring more difficult.
Other Exchanges Under Scrutiny
The report also highlights ABCeX, an unsanctioned exchange operating from Moscow’s Federation Tower — the same building previously associated with Garantex before U.S. authorities seized its domains in 2025.
Elliptic estimates ABCeX has processed at least $11 billion in crypto transactions, including substantial transfers to Garantex and another exchange, Aifory Pro.
Another case involves Exmo, which announced it had exited the Russian market following the 2022 invasion of Ukraine by selling its regional business to a separate entity, Exmo.me. However, Elliptic’s findings suggest operational links may still exist, pointing to shared custodial systems and pooled hot wallets. More than $19.5 million in transactions were reportedly recorded between Exmo and sanctioned exchanges, including Garantex, Grinex, and Chatex.
Georgia-registered exchange Rapira, which maintains a Moscow office, was also flagged after allegedly sending over $72 million to the sanctioned platform Grinex. Russian authorities reportedly raided Rapira’s offices in late 2025 over suspected capital transfers to Dubai.
Meanwhile, Aifory Pro is said to offer cash-to-crypto services in Moscow, Dubai, and Turkey. The company reportedly provides virtual payment cards funded with USDT, enabling Russian users to access services restricted by Western companies. Elliptic also traced nearly $2 million in transfers from Aifory Pro to the Iranian exchange Abantether.
Enforcement May Be Redirecting, Not Stopping, Crypto Flows
Researchers argue the broader pattern shows that sanctions enforcement may be redirecting crypto activity rather than eliminating it.
After the shutdown of Garantex, transaction volumes reportedly increased on other exchanges, according to multiple analytics firms.
Data from Chainalysis shows that illicit crypto addresses received a record $154 billion in 2025, while TRM Labs produced a similar estimate of $158 billion.
At the same time, Russia’s industrial crypto mining sector continues to grow. The country’s two largest mining operators, BitRiver and Intelion, reportedly generated a combined $200 million in revenue in 2024, accounting for more than half of the legal domestic mining market.
Overall, the report paints a picture of an ecosystem that adapts quickly to enforcement pressure. While sanctions may shut down individual platforms, new services appear ready to absorb displaced activity — raising ongoing challenges for regulators trying to contain illicit crypto flows.
