Crypto exchanges that maintain active or financial ties to Russia continue to help avoid international sanctions, according to a report by Elliptic.
Summary
- Elliptic says some exchanges are helping Russia circumvent crypto sanctions.
- Wallet rotation and P2P ruble trading disrupts the flow of permits.
- Shared storage connects Exmo’s global platform with Russia.
The platforms provide commercial channels that allow Russian businesses to make cross-border payments secured from traditional banking supervision through ruble-to-crypto conversions.
Bitpapa, which was approved by the US Office of Foreign Exchange in March 2024, sends approximately 9.7% of crypto-currencies to OFAC-approved destinations, including 5% of Garantex-approved exchanges.
ABCeX has processed at least 11 billion cryptocurrencies in its Moscow Federation Tower office, which used to house Garantex.
Exmo says it has exited the Russian market but continues to share wallet infrastructure between its West-facing and Russia-facing platforms. They made more than $19.5 million in direct transactions with sanctioned entities.
Bitpapa and ABCeX use crypto wallet rotation to avoid tracking
Bitpapa, a peer-to-peer exchange and company registry in the UAE, primarily targets Russian users who allow rubles to be exchanged for crypto.
Blockchain analysis shows that the platform controls wallets to avoid the use of sanctions by changing addresses.
This prevents transaction monitoring systems from recognizing Bitpapa as a partner and hides the Russian origin of the fund.
ABCeX operates both order-book and P2P ruble-to-crypto trading from Moscow’s Federation Tower.
The exchange uses wallet encryption techniques to prevent crypto transactions from connecting to the service. ABCeX posted prices for Garantex and Aifory Pro, which specializes in cash-to-crypto services.
Fiat currencies including rubles are converted to crypto through these services before being transferred across borders without going through intermediaries.
Assets can then be converted into local currency through international crypto brokers or exchanges. Many negotiations maintain the registration of the name outside of Russia while helping with the high commercial values associated with the sanctioned organizations.
Exmo shares the wallet infrastructure between different platforms
Exmo says it is exiting the Russian market following the invasion of Ukraine in 2022 by selling its regional business to Exmo.me.
Blockchain analysis contradicts this separation of local operations, showing Exmo.com and Exmo.me continue to share the same wallet infrastructure.
Crypto deposited on either platform is merged into the same hot wallet address, while withdrawals from both platforms are issued to the same addresses.
The shared infrastructure does not reflect a real division of operations and allows funds from a Russian-oriented environment to merge with a Western-oriented organization. Exmo traded in Garantex, Grinex, and Chatex.
Rapira, a Georgia-incorporated exchange with a Moscow office, facilitates ruble-based trading and participates in direct crypto trading through Grinex totaling more than $72 million.
Moscow authorities have reportedly raided Rapira’s offices as part of an investigation into a major flight to Dubai.
Aifory Pro operates in Moscow, Dubai, and Turkey, acting as a “Payment Agent for Foreign Economic Activities” for international trade between Russia and China.
