Sanctions

Binance still serving Russians while seeking clarity on EU crypto sanctions

There is a challenge of not overdoing EU sanctions against Russia, according to Binance head of sanctions Chagri Poyraz.

In the weeks following new sanctions from the European Union, Binance has kept its doors open for nonsanctioned Russian nationals — but that does not mean that the firm isn’t complying with the sanctions, according to Binance’s newly appointed sanctions executive.

Western sanctions against Russia have been a major challenge for Binance from day one, and the firm has been working hard to comply, Binance’s global head of sanctions, Chagri Poyraz, told Cointelegraph in an interview.

Since the start of Russia’s invasion of Ukraine, Binance has comprehensively blocked several non-government-controlled territories of Ukraine, including annexed regions like Donetsk and Luhansk, Poyraz said.

“There is still an active war going on in the region,” he noted, adding that Binance continues to actively monitor the situation. Binance has more than 500 compliance executives globally, and about half of them are directly involved in sanctions control, including Anti-Money Laundering, name screening and other procedures.

In addition to comprehensive sanctions, which are imposed in connection with a certain country or region, there are also targeted sanctions, or those directed at specific individuals, companies or activities. Binance has “zero tolerance” for accounts blocked by targeted sanctions and has frozen or restricted a number of Russian accounts in line with sanctions from different jurisdictions, Poyraz said.

Authorities in the United States have imposed a number of targeted sanctions, providing lists of sanctioned individuals and firms, wallets and related guidances, the executive noted. But just like the cryptocurrency industry as a whole, crypto sanctions are a new concept, and there is still a lack of guidance and clarity, especially when it comes to different jurisdictions.

“The hardest part is the EU sanctions,” Poyraz said, highlighting the industry’s need for better clarity on them. Binance has reached “no particular dialogue” with EU regulators after they adopted an eighth sanctions package, which included some major crypto restrictions, he noted, adding:

“We do obviously follow all the EU sanctions, but there is room for improvement when it comes to clarity. […] We are trying to follow sanctions as they are. The challenge is not overdoing, doing what you’ve been told. The regulation has to be clear.”

The executive emphasized that the current uncertainty around EU sanctions against Russia is not just Binance’s problem but is an “industry problem.”

The initial sanctions only capped Russia-EU crypto payments at around $10,000, but the latest restrictions, imposed in early October, further tightened prohibitions, banning “all crypto-asset wallet, account, or custody services, irrespective of the amount of the wallet.”

The European Commission did not provide any additional details about the crypto sanctions on its official Q&A page. Its press team did not respond to Cointelegraph’s request for comment.

Related: Russian users are welcomed by crypto exchanges in Kazakhstan, but there’s a catch

While Binance continues to support services for Russians, a number of crypto exchanges and wallets exited Russia shortly after the EU imposed the eighth, most recent sanctions package.

Platforms like Crypto.com, LocalBitcoins and Blockchain.com notified their users about halting services in Russia as of mid-October. On Oct. 19, Kraken became one of the latest exchanges to restrict the accounts of Russian users, citing compliance with EU sanctions.

As previously reported, Russia is one of Binance’s biggest markets, ranking in the top 10 for the crypto exchange as of October 2019.

Binance still serving non-sanctioned Russians while seeking clarity on EU crypto regulations

There is a challenge of not overdoing EU sanctions against Russia, according to Binance head of sanctions Chagri Poyraz.

In the weeks following new sanctions from the European Union, Binance has kept its doors open for nonsanctioned Russian nationals — but that does not mean that the firm isn’t complying with the sanctions, according to Binance’s newly appointed sanctions executive.

Western sanctions against Russia have been a major challenge for Binance from day one, and the firm has been working hard to comply, Binance’s global head of sanctions, Chagri Poyraz, told Cointelegraph in an interview.

Since the start of Russia’s invasion of Ukraine, Binance has comprehensively blocked several non-government-controlled territories of Ukraine, including annexed regions like Donetsk and Luhansk, Poyraz said.

“There is still an active war going on in the region,” he noted, adding that Binance continues to actively monitor the situation. Binance has more than 500 compliance executives globally, and about half of them are directly involved in sanctions control, including Anti-Money Laundering, name screening and other procedures.

In addition to comprehensive sanctions, which are imposed in connection with a certain country or region, there are also targeted sanctions, or those directed at specific individuals, companies or activities. Binance has “zero tolerance” for accounts blocked by targeted sanctions and has frozen or restricted a number of Russian accounts in line with sanctions from different jurisdictions, Poyraz said.

Authorities in the United States have imposed a number of targeted sanctions, providing lists of sanctioned individuals and firms, wallets and related guidances, the executive noted. But just like the cryptocurrency industry as a whole, crypto sanctions are a new concept, and there is still a lack of guidance and clarity, especially when it comes to different jurisdictions.

“The hardest part is the EU sanctions,” Poyraz said, highlighting the industry’s need for better clarity on them. Binance has reached “no particular dialogue” with EU regulators after they adopted an eighth sanctions package, which included some major crypto restrictions, he noted, adding:

“We do obviously follow all the EU sanctions, but there is room for improvement when it comes to clarity. […] We are trying to follow sanctions as they are. The challenge is not overdoing, doing what you’ve been told. The regulation has to be clear.”

The executive emphasized that the current uncertainty around EU sanctions against Russia is not just Binance’s problem but is an “industry problem.”

The initial sanctions only capped Russia-EU crypto payments at around $10,000, but the latest restrictions, imposed in early October, further tightened prohibitions, banning “all crypto-asset wallet, account, or custody services, irrespective of the amount of the wallet.”

The European Commission did not provide any additional details about the crypto sanctions on its official Q&A page. Its press team did not respond to Cointelegraph’s request for comment.

Related: Russian users are welcomed by crypto exchanges in Kazakhstan, but there’s a catch

While Binance continues to support services for Russians, a number of crypto exchanges and wallets exited Russia shortly after the EU imposed the eighth, most recent sanctions package.

Platforms like Crypto.com, LocalBitcoins and Blockchain.com notified their users about halting services in Russia as of mid-October. On Oct. 19, Kraken became one of the latest exchanges to restrict the accounts of Russian users, citing compliance with EU sanctions.

As previously reported, Russia is one of Binance’s biggest markets, ranking in the top 10 for the crypto exchange as of October 2019.

Kraken crypto exchange is next to close doors to Russian users

Former Kraken CEO Jesse Powell previously warned crypto investors about the risks of holding crypto on a centralized exchange.

Kraken is the latest cryptocurrency exchange to restrict accounts of Russian users on its platform in compliance with sanctions from the European Union.

On Oct. 19, Kraken sent out email statements to its Russian clients to announce that the exchange is halting services to its Russian customers.

“Due to the new European legislation, we have to take measures to restrict your Kraken account,” the company said. According to an email statement seen by Cointelegraph, Russian users would be able to withdraw their funds by request.

“We will update our support center if there are any changes,” Kraken noted, adding: “We apologize for the inconvenience caused.”

Kraken didn’t specify whether there’s a time limit to withdraw the funds from the exchange for Russian citizens. A spokesperson for Kraken told Cointelegraph that the firm complies with the “legal and regulatory requirements in all jurisdictions” of its operations. “Since the EU’s announcement, we have been working to make the changes needed to comply with the latest package of sanctions against Russia,” the representative noted.

The latest restrictions on Kraken are not the first time the exchange has dealt with regulators forcing centralized exchanges to shut down certain accounts.

In February 2022, former Kraken CEO Jesse Powell condemned the Canadian authorities for freezing crypto wallets involved in funding local COVID-19 protests. He explicitly warned the public that Kraken could be forced to freeze some wallets by regulators, advising crypto investors to move crypto out of exchanges.

“If you’re worried about it, don’t keep your funds with any centralized or regulated custodian. We cannot protect you,” Powell said at the time.

Powell also responded to Ukraine’s call to block Russian users’ addresses on crypto exchanges, saying that Kraken would no do that without a legal obligation:

By restricting Russian users on its platform, Kraken joins the increasing number of global crypto exchanges and wallets that stopped servicing Russians in compliance with the latest EU sanctions against Russia.

As previously reported, several crypto firms, including Blockchain.com, Crypto.com and LocalBitcoins, have ceased operations for Russians.

Related: Russian users are welcomed by crypto exchanges in Kazakhstan, but there’s a catch

Bitfinex, one of few exchanges that previously opposed banning non-sanctioned Russians from using its platform, appears to have been forced to comply with sanctions as well.

“We comply with all the regulations under which we are bound and are monitoring this situation closely,” Bitfinex’s senior PR manager, Joe Morgan, told Cointelegraph on Oct. 20. Bitfinex chief technology officer Paolo Ardoino previously recommended that investors use noncustodial hardware wallets to better protect their funds.

The new crypto sanctions are part of the EU’s eighth package of sanctions that were imposed on Oct. 6. The sanctions put a blanket ban on any crypto transactions and payments between Europe-regulated companies and Russian users. The EU initially adopted its first crypto sanctions against Russia in April, limiting Russian users or residents from trading if their holdings exceeded 10,000 euros ($10,000) at the time.

Russian users are welcomed by crypto exchanges in Kazakhstan, but there’s a catch

​​Non-sanctioned foreigners are “more than welcome” at Intebix, but they need to set up a local bank card for crypto-to-fiat transactions, the CEO said.

Some cryptocurrency exchanges continue onboarding Russian nationals despite the latest Western sanctions against Russia, but not without certain restrictions.

In late September, Kazakhstan’s President Kassym-Jomart Tokayev witnessed the nation’s first regulated fiat-to-crypto purchase by a local commercial bank, the Eurasian Bank.

The transaction involved a local crypto exchange called Intebix, which allows retail clients to buy crypto with the local currency, the Kazakhstani tenge (KZT).

Intebix is not limited to Kazakhstani nationals, and the crypto exchange is willing to service foreigners coming to the country, according to Intebix co-founder and CEO Talgat Dossanov. He emphasized that Intebix’s crypto transactions are only accessible for card holders from one of Kazakhstan’s banks.

“Although foreign nationals are more than welcome at Intebix, they will need a local bank card to enjoy the crypto-to-fiat transactions,” Dossanov said in an interview with Cointelegraph.

The CEO noted that Intebix supports crypto transactions for verified clients only, while local banks carefully check each potential client on whether they are being sanctioned. Dossanov stated:

“Russian nationals who are not in sanction lists are welcome at Intebix, though they will need to pass a deep compliance check and open an account in a local bank to enjoy the crypto-to-fiat transactions.”

Kazakhstan became one of the prime destinations for Russian nationals seeking to avoid being called up to fight in Ukraine after Russian President Vladimir Putin announced a partial mobilization in mid-September. About 200,000 Russians fleeing mobilization have reportedly entered Kazakhstan as of Oct. 6.

Major banks in Kazakhstan, including Halyk Bank, reportedly suspended the use of Russia’s payment system Mir amid sanctions warnings by the United States Treasury Department.

Apart from boycotting Mir, some Kazakhstan banks also stopped accepting payments from local branches of major Russian banks like Sberbank, causing them to sell their local businesses.

Despite welcoming foreigners, the Intebix crypto exchange is still committed to complying with sanctions in its way.

“Since we are a regulated exchange we have to comply with the requirements set by our regulators. We constantly monitor the current situation to make sure we operate within the regulatory framework,” Dossanov said.

The CEO stressed that Intebix doesn’t restrict all Russian nationals on its platform because the firm is regulated by the Astana International Financial Centre (AIFC). On the other hand, Biteeu, the European branch of Intebix, no longer onboards Russians in line with sanctions from the European Union.

Dossanov co-founded Biteeu in 2019 with Kazakh businessman Shukhrat Ibragimov, the son of local oligarch Alijan Ibragimov. Biteeu co-founder Ibragimov has been a board member of the Eurasian bank since 2017. He also became a board manager at the local mining giant and raw materials supplier Eurasian Resources Group (ERG) after his father — a major ERG shareholder and co-founder — passed away in February 2021.

According to Dossanov, Ibragimov is the sole investor in Biteeu and Intebix. “The reason why Eurasian Bank is the first crypto-friendly bank in the region is mostly because of Ibragimov. He believes in crypto and sees new opportunities,” the exec stated.

Related: Kazakhstan grants Binance permanent license to offer digital asset services

Kazakhstan has emerged as one of the world’s biggest crypto-mining hubs. The country has been actively adopting policies to promote crypto adoption, officially authorizing crypto exchanges to open bank accounts in June 2022.

Binance, one of the world’s biggest crypto exchanges, received in-principle approval to operate as a digital trading facility and provide custody services in AIFC in August. On Oct. 19, Binance reportedly appointed Zhaslan Madiyev, a former deputy minister at the Ministry of Digital Development, as director of Binance Kazakhstan.

Blockchain​.com closes crypto custody for Russians amid EU sanctions

Blockchain.com will soon shut down accounts of Russian nationals, while companies like Binance are also working to apply the new EU sanctions.

Crypto wallet provider Blockchain.com is the latest company to soon cease to provide services to Russian nationals due to the latest sanctions by the European Union.

Blockchain.com has notified its users that it’s going to shut down accounts of Russian nationals in two weeks, the local news agency RBC reported on Oct. 14.

According to the report, Blockchain.com will allow Russian users to withdraw their funds until Oct. 27, 2022. After that date, the accounts of Russian nationals are reportedly going to be blocked.

The statement emphasized that Blockchain.com is currently prohibited from providing custodial and reward services to Russian citizens in line with the EU’s eighth package of sanctions against Russia.

Unlike previous sanctions, which only limited Russan-EU crypto payments to around $9,700, or 10,000 euros, the latest package puts a blanket ban on cross-border crypto payments between Russians and the EU. The new sanctions were imposed on Oct. 6.

Blockchain.com’s services are not limited to custodial services. Blockchain.com also runs a noncustodial wallet, which ideally is designed to allow users to fully control their assets while the company has no access to the wallet’s data. In addition to the noncustodial wallet, Blockchain.com also runs custodial trading accounts, which allow users to buy and sell crypto on the platform.

It remains unclear whether Russian customers will be able to retain access to their noncustodial wallets on Blockchain.com. The firm did not immediately respond to Cointelegraph’s request for comment.

Blockchain.com is not the only platform to halt some services to Russians amid the latest sanctions. Major blockchain developer Dapper Labs also suspended Russian accounts due to the EU’s latest sanctions against Russia and its nationals.

Many other major exchanges and peer-to-peer platforms, including Crypto.com and LocalBitcoins, are planning to restrict services for Russian nationals in line with the sanctions as well. “We are fully compliant with EU sanctions,” a spokesperson for Crypto.com told Cointelegraph.

Starting Oct. 7, P2P exchange LocalBitcoins stopped offering Russian users its services, including both trading as well as wallet services, chief marketing officer Jukka Blomberg told Cointelegraph. “As a result of the 8th EU-wide sanction package, we unfortunately have to restrict the Russian customers’ activity completely on the LocalBitcoins platform,” he said.

Blomberg noted that the Russian trade volume was about 8% of the firm’s total volumes in September 2022. Russia was once the largest LocalBitcoin market, accounting for 19% of all total BTC trading volumes on the exchange on monthly basis in 2020.

Related: Russian officials approve use of crypto for cross-border payments

Binance, one of the world’s largest crypto exchanges, is no exception. The firm is working around the clock to apply the new restrictions for Russians as well. “Changes like these take time to implement as we have to carefully coordinate with multiple tech and risk management partners,” a spokesperson for Binance told Cointelegraph.

Some exchanges, including Tether’s sister firm Bitfinex, previously opposed crypto sanctions against regular Russian people. “Our view is that the actions of a government do not necessarily represent the wishes of individuals,” Bitfinex chief technology officer Paolo Ardoino said in March 2022. He added that Bitfinex was willing to protect the accounts of all its customers “unless otherwise directed by the regulatory authorities” by which they are governed.

Coin Center files lawsuit against US Treasury over Tornado Cash sanctions

The advocacy group alleged OFAC “exceeded their statutory authority” in sanctioning Tornado Cash because the mixer was a “privacy tool beyond the control of anyone.”

United States-based crypto policy advocacy group Coin Center has followed through with its intention to take the Treasury Department’s Office of Foreign Asset Control, or OFAC, to court over sanctioning cryptocurrency mixer Tornado Cash.

In an Oct. 12 filing in the U.S. District Court for the Northern District of Florida, lawyers for Coin Center as well as crypto investor David Hoffman, an anonymous human-rights advocate known only as John Doe and software developer Patrick O’Sullivan filed a complaint against OFAC, Treasury Secretary Janet Yellen and OFAC Director Andrea Gacki. The complaint alleged that sanctioning Tornado Cash was “unprecedented and unlawful,” in part, due to privacy concerns over crypto transactions.

“If a user doesn’t take proactive steps to protect his privacy, the ledger’s transparency allows strangers to track his private associations and stalk his intimate relations,” said the filing. “It invites publicization of and retaliation for his private contributions to unpopular causes. And it allows anyone to see whether he has a lot of assets, which would put a target on his back.”

The plaintiffs added:

“As a result of the Biden Administration’s action, Americans who use Tornado Cash to protect their privacy while using their own assets are criminals. Additionally, their receipt of any asset through Tornado Cash, even one from a stranger that they did not solicit, is a federal crime. And their use of Tornado Cash to protect their expressive activities is criminal as well.”

Coin Center alleged Yellen, Gacki and OFAC “exceeded their statutory authority” in adding the crypto mixer to its list of sanctioned entities because Tornado Cash was a “privacy tool beyond the control of anyone.” The plaintiffs claimed OFAC “defied its own rules on the books” in imposing the sanctions in addition to violating the constitutional rights of users whose only intent was achieving some measure of privacy.

“They respectfully request that this Court hold unlawful, set aside, and permanently enjoin the enforcement of the criminalization of Tornado Cash,” said the complaint.

Among Coin Center’s reasons for the court to overrule the sanctions included donors wishing to keep their transactions private, claiming having Tornado Cash sanctioned means they are “less likely to contribute.” O’Sullivan and Hoffman, public figures in the Ethereum ecosystem, used the mixer as a means “to protect himself and his family” from the public tracking his funds as well as to avoid “potential civil and criminal liability” from receiving unsolicited tokens, respectively.

Doe, though living in the United States, has donated in crypto to pro-Ukraine causes amid the country’s war with Russia. He claimed being cut off from a privacy tool would make it more likely for Russian agents to “learn about his pro-Ukrainian activities,” potentially putting his livelihood at risk.

Coin Center’s legal team sought for the court to set aside Tornado Cash’s designation as an OFAC Specially Designated National with a “declaration that the criminalization of Tornado Cash is null, void, and with no force or effect.” In addition, they requested compensation for attorneys’ fees and other costs related to the case as well as “any other relief that the Court deems just and proper.”

OFAC added Tornado Cash as well as 44 USD Coin (USDC) and Ether (ETH) addresses connected to the mixer to its list of Specially Designated Nationals on Aug. 8. On Aug. 12, Dutch authorities reported they had arrested Tornado Cash developer Alexey Pertsev, claiming he had facilitated illicit transactions and money laundering through the mixer. TheTreasury also later clarified that publishing the controversial mixer’s code would not be a violation of U.S. sanctions

Related: Tornado Cash is the latest chapter in the war against encryption

Coin Center’s lawsuit followed crypto investors backed by Coinbase suing the Treasury Department in September, claiming OFAC’s sanctioning of Tornado Cash was “not in accordance with law.” Coinbase CEO Brian Armstrong argued the Treasury’s actions exceeded its authority, and would “harm innocent people, remove privacy and security options for crypto users, and stifle innovation.”

US Treasury’s OFAC and FinCEN announce $29M in enforcement actions again Bittrex

Bittrex agreed to pay more than $29 million in a settlement with FinCEN, but the regulator said it will credit a $24-million payment “to settle its potential liability with OFAC.”

The United States Department of the Treasury’s Office of Foreign Assets Control and Financial Crimes Enforcement Network took enforcement actions against crypto exchange Bittrex for allegedly violating sanctions programs as well as reporting requirements under the Bank Secrecy Act, or BSA.

In an Oct. 11 announcement, the U.S. Treasury said Bittrex had agreed to a more than $24-million settlement with OFAC for violations of “multiple sanctions programs” by failing to prevent individuals based in the Crimea region, Cuba, Iran, Sudan and Syria from conducting roughly $263 million in crypto transactions between 2014 and 2017. According to the Treasury Department, Bittrex did not screen users based on accessible location information in the sanctioned countries using internet protocol addresses.

“When virtual currency firms fail to implement effective sanctions compliance controls, including screening customers located in sanctioned jurisdictions, they can become a vehicle for illicit actors that threaten U.S national security,” said Andrea Gacki, director of OFAC. “Virtual currency exchanges operating worldwide should understand both who — and where — their customers are.”

In addition, FinCEN announced parallel enforcement actions in which Bittrex agreed to pay more than $29 million. However, the financial regulator said it will credit Bittrex’s $24-million payment “to settle its potential liability with OFAC.”

According to FinCEN, the crypto exchange “failed to maintain an effective AML program” from 2014 to 2018, “resulting in significant exposure to illicit finance” through privacy coins. The regulator further alleged that Bittrex failed to document many transactions in sanctioned jurisdictions from 2014 to 2017 through suspicious activity reports.

Acting Director of FinCEN Himamauli Das added:

“Virtual asset service providers are on notice that they must implement robust risk-based compliance programs and meet their BSA reporting requirements. FinCEN will not hesitate to act when it identifies willful violations of the BSA.”

In a statement to Cointelegraph, a Bittrex spokesperson said that “none of the allegations” from FinCEN or OFAC related to the exchange’s practices after 2018 and it was “pleased to have fully resolved this matter.” The company added that it “employed third-party experts and service providers” to review its compliance with sanctions and Anti-Money Laundering policies.

Related: US Treasury sanctions Iran-based ransomware group and associated Bitcoin addresses

In December 2020, the U.S. Treasury announced a $98,830 settlement with BitGo over the digital asset custodian allowing residents of many of the same sanctioned jurisdictions — Crimea, Cuba, Iran, Sudan and Syria — to conduct crypto transactions between 2015 and 2019. In February 2021, the government department fined BitPay $507,375 for facilitating “approximately $129,000 worth of digital currency-related transactions with BitPay’s merchant customers” in sanctioned areas.

EU regulators ban cross-border payments from Russian crypto accounts

In a statement on Oct. 6, regulators in the European Union banned all crypto-asset wallets, accounts and custody services from Russia.

In a statement released on Oct. 6, the European Union introduced another set of sanctions against Russia due to the prolonged and recently escalated conflict in Ukraine.

The new sanctions include a complete ban on cross-border crypto payments between Russians and the EU. This statement includes the prohibition of, “all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet.”

New sanctions were installed as a response to Russia’s annexation of Ukrainian territory as the result of what the EU calls a “sham” referendum, along with troop mobilization and threats of nuclear escalation.

The previous sanctions capped crypto payments from Russian to EU wallets at 10,000 euros (approximately $9,900).

However, this new total ban on cross-border crypto payments between the regions aligns with the EU’s desire to “further deprive the Kremlin’s military and industrial complex of key components and technologies.”

Related: Russia blocks OKX website for alleged unreliable financial information: Reports

This comes shortly after Russian officials’ approval of the usage of crypto for cross-border payments. In the policy, which approved such transactions, lawmakers described ways to acquire cryptocurrency and its uses.

The decision aligned with the Central Bank of Russia’s agreement to legalize crypto for cross-border payments a few weeks prior on Sept. 5. 

In its relations with China, Russia aims to use a central bank digital currency, which is currently in a pilot phase, for transaction settlements. Previously, in 2020, the country adopted a law that banned payments via digital assets.

However, proceeding with the latest tightening of sanctions from the EU, Russia faced additional blockages from the United States. On Sept. 15, the U.S. Treasury Department added 22 Russian individuals and two entities based in the country to its own list of sanctions as a result of neo-Nazi paramilitary activity. 

US Treasury official says crypto mixers are a ‘concern’ in enforcing sanctions

Assistant Secretary at the Treasury Department Elizabeth Rosenberg said sanctioning crypto mixers could help deter money laundering from entities in Russia, Iran and North Korea.

Elizabeth Rosenberg, the assistant secretary for terrorist financing and financial crimes at the United States Department of the Treasury, suggested sanctioning cryptocurrency mixers could help strengthen the government’s response to foreign entities looking to use digital assets for illicit means. 

In a Tuesday hearing of the Senate Banking Committee, which covered sanctions on Russia, Rosenberg said having the Treasury Department add crypto mixers like Blender.io or Tornado Cash to its list of Specially Designated Nationals could be an effective way of signaling the U.S. government was acting to prevent entities from circumventing sanctions.

“When [sanctions] can serve as a deterrent to any criminal that would seek to use a mixer in order to launder their funds […] that’s an effective avenue we can use in order to signal that we cannot tolerate money laundering,” said Rosenberg. “Whether that’s for a Russian criminal actor, an Iranian, a North Korean or wherever they may come from.”

She added:

“Anonymity-enhancing technology such as mixers […] are indeed a concern for understanding the flow of illicit finance and getting after it.”

Elizabeth Rosenberg addressing the U.S. Senate Banking Committee on Tuesday

Rosenberg responded to questions from Massachusetts Senator Elizabeth Warren, who said some in the crypto space were “furious” about Treasury sanctioning mixers and suggested Russian oligarchs could use digital assets to avoid efforts aimed at economically impacting individuals and entities tied to the war on Ukraine. Many in the space have criticized the Treasury’s actions, including Coinbase — the crypto exchange announced on Sept. 8 that it would be bankrolling a lawsuit against the government department challenging the sanctions on Tornado Cash.

Related: US Treasury sanctions Iran-based ransomware group and associated Bitcoin addresses

In addition to blenders including Blender.io and Tornado Cash, the Treasury targeted specific Bitcoin (BTC) addresses allegedly tied to individuals in a Russian neo-Nazi paramilitary group and an Iran-based ransomware group in September. Amid criticism and uncertainty among crypto users, the Treasury later clarified that no one was prohibited from sharing Tornado Cash’s code on websites or publications.

US Treasury sanctions 5 crypto addresses connected to Russian neo-Nazi paramilitary group

According to the Treasury Department, members of the sanctioned group fought alongside Russia’s military, including near territory Ukrainian forces reclaimed on Monday.

The United States Department of the Treasury added five cryptocurrency addresses tied to a neo-Nazi group involved in Russia’s war on Ukraine to list of entities sanctioned by the Office of Foreign Asset Control.

In a Thursday notice, the U.S. Treasury designated 22 individuals and two entities, including many the government department claimed had furthered the Russian government’s objectives in Ukraine, to its list of Specially Designated Nationals, effectively barring U.S. persons and companies from dealing with them. Included in the sanctions of one of the entities — a neo-Nazi paramilitary group called Task Force Rusich — were two cryptocurrency addresses for Bitcoin (BTC), two for Ether (ETH) and one for Tether (USDT).

Treasury Secretary Janet Yellen said the sanctions were imposed as part of the government’s efforts “to hold Russia accountable for its war crimes, atrocities and aggression,” financially isolate Russian President Vladimir Putin, and prevent the country from financing its military. On Monday, Ukraine’s military took back a section of the territory east of the city of Kharkiv that had been occupied by Russian forces for months.

According to the Treasury Department, Task Force Rusich fought alongside Russia’s military in Ukraine, including near the recently reclaimed territory, and had mercenaries accused of “committing atrocities against deceased and captured Ukrainian soldiers” in 2015 during the conflict in the Donbas region. The department claimed the neo-Nazi group was responsible or complicit in actions that “undermine the peace, security, political stability, or territorial integrity of the United States, its allies, or its partners” for the benefit of the Russian government.

Related: Ukraine has shown the value cryptocurrency offers to real people

Since Russia’s military started its invasion of Ukraine in February, the U.S. government and many officials in Europe have imposed sanctions aimed at weakening the country’s economy and penalizing wealthy individuals. On Wednesday, the Treasury Department also announced that it had sanctioned seven BTC addresses allegedly connected to wto Iranian nationals who were part of a ransomware group.