US Treasury Department fights sanctions for involvement in money laundering through cryptocurrencies linked to Russian elite

s alleged role in helping Russian elites, extortion groups, and other illicit actors circumvent U.S. and international sanctions through the misuse of cryptocurrencies. Nelson said the Treasury Department remains steadfast in its efforts to protect the global financial system from such exploitation and other risks in the crypto ecosystem.

It is alleged that OFAC's attention was drawn to Zhdanova's involvement in concealing the source of wealth for a Russian client, enabling the transfer of more than $2.3 million to Western Europe through fraudulent investment accounts and real estate purchases. Zhdanova's services provided authorized Russian persons with access to''Western financial markets to which they would not normally have access due to U.S. and international prohibitions. The U.S. Treasury Department argues that such illicit financial activity avoids multilateral sanctions and undermines efforts to hold Russia accountable for its non-provocative war and aggression.

Using cryptocurrencies as a vehicle for large cross-border transactions, Zhdanova relied on organizations without AML/CFT controls, including a Russian cryptocurrency exchange named by OFAC, Garantex Europe OU.