A revealing examination by blockchain intelligence company Elliptic highlights how five cryptocurrency platforms allied with Russia are skirting international sanctions, facilitating billions in dubious financial activities. Following the closure of major exchange Garantex by U.S. authorities in March 2025, these platforms have stepped into the breach, operating beyond the reach of traditional banking protocols to maintain a financial conduit for Russian interests. The insights from Elliptic’s research come as the European Union considers a comprehensive crypto ban targeting Russia, highlighting the increasing vulnerability of digital currencies within the sanctions regime.
What Methods Do Shadow Exchanges Use?
Only Bitpapa among the five scrutinized exchanges is on current sanctions lists, underscoring the extensive and elusive nature of unlawful crypto operations. Blacklisted by the US Office of Foreign Assets Control (OFAC) in March 2024, Bitpapa routes about 10% of its transactions to sanctioned entities. The exchange frequently changes wallet addresses, making it hard for monitoring systems to track. Meanwhile, ABCeX, located in Moscow’s Federation Tower, has become a major center for bypassing sanctions, handling $11 billion in transactions.
How Do Financial Channels Expand Across Borders?
Rapira, with operations in Georgia, and Aifory Pro, a multinational enterprise, emerge as key channels for Russian finances seeking international reach. In a significant move, Russian authorities raided Rapira’s Moscow offices over alleged illegal transfers to Dubai, highlighting the regulatory challenges. Simultaneously, Aifory Pro facilitates user circumvention of Western service curbs via USDT-backed virtual cards. This setup, integrating Moscow, Dubai, and Turkey, allows payments on restricted platforms such as Airbnb and ChatGPT, further broadening the arsenal for bypassing sanctions.
Elliptic’s findings emphasize that the volume of illegal activity tracked on blockchains exceeded $150 billion in 2025, reflecting growing breaches in sanction controls. Particularly important is the ruble-pegged stablecoin A7A5, which has amassed over $93 billion in transactions. These developments illustrate Russia’s strategic shift toward implementing domestic crypto regulations, potentially strengthening these evasion strategies.
“Our analysis demonstrates that taking down one large exchange does not collapse the illegal crypto economy; instead, criminal activity disperses to multiple smaller and more nimble platforms,” Elliptic stated in its report.
Western authorities’ efforts to enforce strict restraints have been constantly outpaced by the adaptability of these digital networks. Despite targeting the most flagrant violators, numerous substitute exchanges quickly emerge, utilizing advanced concealment tactics, including continuous address alterations and complex transaction layers. These practices are specifically crafted to bypass Name Screening and Know Your Customer (KYC) procedures.
Governments find themselves in a reactive position as the pace at which rogue exchanges emerge turns addressing these concerns into a challenging game of cat and mouse globally. Compliance teams worldwide struggle due to institutional vulnerabilities, varying legal stipulations, and jurisdictional loopholes, often making them a step behind perpetrators.
Elliptic’s report serves as a clear indication of the tenacity and ingenuity within networks circumventing sanctions. Without coordinated international efforts and advanced technological safety measures, digital channels will persist as favored options for illicit financial conduct. There is an urgent need for integrated cross-border actions to bolster current anti-money-laundering frameworks.
