U.S. and Ukraine jointly identify Russian offenders in the cryptocurrency sector
The US is stepping up cooperation with international partners in identifying individuals trying to avoid sanctions. Law enforcement agencies are working with Chainalysis and Ukrainian investigators to identify Russian citizens who may be using cryptocurrency to hide their assets.
This information is made public by the IRS Criminal Investigations Division, according to Bloomberg.
This agency provides Ukrainian detectives with access to the Chainalysis tool, which helps in the investigation of cryptocurrency-related crimes.
The tool also provides an opportunity for Ukrainian law enforcement officers to receive virtual or in-person training on tracking blockchain transactions.
"Sharing tools protects not only the US financial system, but also the global economy. We expect that such efforts will facilitate information sharing and case development between the United States and Ukraine," said Jim Lee, head of the IRS Criminal Investigations Division.
Regulators, central banks, and politicians have emphasized that countries, including Russia and Iran, may use cryptocurrencies to avoid international sanctions.
Last April, the US Treasury Department imposed sanctions on Swiss bitcoin mining company BitRiver, accusing it of helping Russia turn its natural resources into cash.
"Cryptocurrencies are not yet liquid enough to support large-scale evasion of Russian sanctions, but it is happening on a smaller scale," said Michael Gronager, co-founder and CEO of Chainalysis.
He also added that cryptocurrencies are playing an unprecedented role in the war through donor contributions - both in support of Ukraine and Russia.
According to him, about $5 million in donor contributions have gone to about 100 different pro-Russian groups over the past year, but the pace of donor contributions is starting to slow down as blockchain analysis tools are being used to track and stop some of these transactions.
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