Elliptic flags crypto exchanges aiding Russia

Crypto exchanges maintaining operational or financial connections with Russia continue aiding circumvention of international sanctions, according to an Elliptic report.

The platforms provide transaction routes allowing Russian entities to make cross-border payments shielded from traditional banking oversight through ruble-to-crypto conversions.

Bitpapa, sanctioned by the U.S. Office of Foreign Assets Control in March 2024, sends approximately 9.7% of outgoing crypto funds to OFAC-sanctioned targets, including 5% to the sanctioned exchange Garantex.

ABCeX has processed at least $11 billion in crypto from its Moscow Federation Tower office, previously occupied by Garantex.

Exmo claims to have exited the Russian market but continues sharing custodial wallet infrastructure between its Western-facing and Russian-facing platforms. They conduct over $19.5 million in direct transactions with sanctioned entities.

Bitpapa and ABCeX use crypto wallet rotation to evade tracking

Bitpapa, a peer-to-peer exchange with corporate registrations in the UAE, primarily targets Russian users allowing rubles to be exchanged for crypto.

Blockchain analysis shows the platform manages wallets to evade sanctions enforcement by constantly rotating addresses.

This prevents transaction monitoring systems from identifying Bitpapa as a counterparty and hiding Russian fund origins.

ABCeX operates both order-book and P2P ruble-to-crypto trading from Moscow’s Federation Tower.

The exchange uses wallet-hiding strategies to prevent crypto transactions from being linked to the service. ABCeX has sent amounts to Garantex and Aifory Pro, which specializes in cash-to-crypto services.

Fiat currencies including rubles are converted into crypto through these services before being transferred across borders without passing through intermediaries.

The assets can then be converted to local currency through overseas crypto brokers or exchanges. Many exchanges maintain nominal registrations outside Russia while helping in high volumes of trading linked to sanctioned entities.

Exmo shares wallet infrastructure between separate platforms

Exmo claimed to exit the Russian market following the 2022 invasion of Ukraine by selling its regional business to Exmo.me.

Blockchain analysis contradicts this geographic operational separation, showing Exmo.com and Exmo.me continue sharing identical custodial wallet infrastructure.

Crypto deposited into either platform is pooled into the same hot wallet addresses, while withdrawals for both platforms are issued from matching addresses.

The shared infrastructure shows no real operational separation and allows funds from the Russian-facing platform to co-mingle with the Western-facing entity. Exmo has transacted with Garantex, Grinex, and Chatex.

Rapira, a Georgia-incorporated exchange with a Moscow office, helps in ruble-based trading and has engaged in direct crypto transactions with Grinex totaling over $72 million.

Moscow authorities reportedly raided Rapira’s offices as part of a capital flight investigation to Dubai.

Aifory Pro operates in Moscow, Dubai, and Turkey, serving as a “Foreign Economic Activity Payment Agent” for international trade between Russia and China.