Can Russia Use Crypto To Evade Sanctions?

Apr 5, 2022

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Russian Oligarchs are the current topic of conversation when it comes to using cryptocurrency to evade significant sanctions imposed and adopted by global leaders. Could cryptocurrency be the way that illicit actors move their fortunes out of Russia without access to the SWIFT network?

Host, Ian Andrews, CMO at Chainalysis sits down for the inaugural Chainalysis podcast series with colleagues, Kim Grauer, (Director of Research, Chainalysis) and Salman Banaei (Co-head of Policy, Chainalysis) and discuss the potential for Russia to evade sanctions with cryptocurrency and the relation to Russia and the increase of ransomware in the industry.

This panel uses a wealth of Chainalysis data highlighted in the 2022 Crypto Crime report to shed some light on Moscow City as a hub for illicit activity and provides a detailed breakdown of the infrastructure connecting Russia to notorious ransomware organizations.

The transparency of the blockchain is highlighted in the infamous ransomware attack on American soil and policy discussions highlight Russia’s move away from the USA dollar and the role the digital Yuan plays in the China / Russia relationship.

The audience is in for some real life scenarios of the blockchain being compared to traditional bank robberies and the conversation finishes discussing Chainalysis recent announcement of “on-chain” sanctions oracles and API’s to provide transaction monitoring of sanctioned parties to DeFi and beyond.

Timestamps

(0:46) – What Does The Head of Research At Chainalysis Do?
(2:43) – What Does The Head of Policy At Chainalysis Do?
(4:00) – USA Lawmakers are accelerating activity in a sign that crypto is here to stay
(5:00) – The intersection of Russia, ransomware, malware and cryptocurrency
(10:15) – The cross collaboration of illicit ransomware organizations
(12:15) – How ransomware as a service operates as a legitimate yet illegal business model
(13:30) – How crypto money launderers are acting in broad daylight in Moscow City
(15:00) – Are companies prepared to prevent or react to a ransomware attack
(16:00) – How the colonial pipeline ransomware was broken up by law enforcement
(18:00) – Why Russia won’t be able to significantly evade sanctions using cryptocurrency
(21:03) – How Russia is moving further away from settling in USD$ and moving towards Chinese Yuan
(23:15) – Why the digital Yuan going to play a bigger role as alternative payment rail for Russia
(24:39) – How proactive measures to sanction ransomware laundering exchanges out of Russia paved the way for crypto sanction monitoring
(26:00) – How cryptocurrency transaction monitoring is similar to die packs placed in bags of cash at the bank
(27:13) – The release of the Chainalysis on-chain oracle and API to detect sanctions exposure for smart contracts and DeFi protocols

Resources:

- How FBI Investigators Traced DarkSide’s Funds Following the Colonial Pipeline Ransomware Attack (Blog): https://blog.chainalysis.com/reports/darkside-colonial-pipeline-ransomware-seizure-case-study/
- Russian Cybercriminals Drive Significant Ransomware and Cryptocurrency-based Money Laundering Activity (Blog): https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-russia-ransomware-money-laundering/
- The Chainalysis 2022 Crypto Crime Report: https://go.chainalysis.com/2022-crypto-crime-report.html
- Chainalysis launches free sanctions screening tools (Chainalysis Blog): https://blog.chainalysis.com/reports/sanctions-screening-tools/
- How Chainalysis Helps Compliance Teams Address Sanctions Red Flags (Blog): https://blog.chainalysis.com/reports/fincen-russia-sanctions-red-flags-chainalysis/

Speakers:

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis) https://www.linkedin.com/in/ianhandrews
Kimberly Grauer (Director of Research, Chainalysis) https://www.linkedin.com/in/kimberly-grauer-a9501144
Salman Banaei (Co-head of Policy, Chainalysis) https://www.linkedin.com/in/banaei

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