A recent report by blockchain analytics firm Elliptic revealed that a network of cryptocurrency exchanges associated with Russia is enabling users to circumvent Western financial restrictions by facilitating fund transfers. The study identified five Russian-linked crypto exchanges that are providing avenues for high-volume crypto transactions outside the traditional banking system, despite not being formally sanctioned.
As European officials contemplate stricter measures, including a potential ban on crypto transactions involving Russia, concerns have been raised about the emergence of new platforms to replace previously targeted operators.
Among the exchanges examined, Bitpapa, a peer-to-peer marketplace, is the only platform under US sanctions for alleged sanctions evasion. Elliptic found that approximately 9.7% of Bitpapa’s outgoing transactions were connected to sanctioned entities, and the exchange frequently changed wallet addresses to evade monitoring.
The report also highlighted ABCeX, an unsanctioned exchange operating from Moscow’s Federation Tower, which has processed around $11 billion in crypto, with substantial transfers to Garantex and another exchange, Aifory Pro. Additionally, Exmo, which purportedly exited the Russian market post the 2022 Ukraine invasion, was found to have operational ties with sanctioned exchanges.
Rapira, registered in Georgia but with an office in Moscow, came under scrutiny for transferring over $72 million to a sanctioned exchange, Grinex. Authorities in Russia reportedly raided Rapira’s offices over suspected capital transfers to Dubai. Aifory Pro, the fifth platform, offers cash-to-crypto services in Moscow, Dubai, and Turkey, enabling Russian users to access services restricted by Western providers.
The study suggests that enforcement actions can redirect activity rather than eliminate it, as seen with the rise in transaction volumes on other exchanges following the shutdown of Garantex. In 2025, illicit crypto addresses received a record $154 billion, indicating the persistence of illicit crypto activities. Russia’s industrial crypto mining sector continued to expand in 2024, with BitRiver and Intelion generating a combined $200 million in revenue.
In conclusion, Elliptic’s findings shed light on the network of Russian crypto platforms bypassing sanctions, emphasizing the need for continued vigilance and regulatory measures in the cryptocurrency space.
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