Russian woman sanctioned by US for aiding oligarchs with cryptocurrency

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Russian national Ekaterina Zhdanova. According to authorities, she helped members of the Russian elite circumvent international restrictions using cryptocurrency.

Ekaterina Zhdanova is a Russian national who has been using virtual currency to launder and move millions of dollars for Russian oligarchs and cybercriminals. @ustreasury is imposing sanctions to cut off her access to the international financial system. https://t.co/d3e9z0aKEo

— Under Secretary Brian Nelson (@UnderSecTFI) November 3, 2023

OFAC explained that the Russian national assisted individuals in Russia in gaining access to Western financial markets, and, via virtual currency, facilitated cross-border transfers. In particular, in March 2022 Zhdanova helped a Russian client mask the source of his wealth in order to move more than $2.3 million to Europe through an investment account and the purchase of real estate.

According to authorities, she used entities without AML/CFT-procedures, for example sanctioned Garantex.

OFAC, authorities say, she employed several methods to move funds: cash and connections with international partners and organisations involved in money laundering.

«Zhdanova also uses traditional business to access the international financial system, including via a luxury watchmaking company with offices worldwide», the document states.

The authorities believe the Russian national conducts crypto-exchange operations on behalf of oligarchs who have relocated abroad:

«In one case a Russian oligarch tracked down Zhdanova to move his wealth totaling more than $100 million to the United Arab Emirates on his behalf. In addition, Zhdanova helped provide UAE tax residency to Russian clients and perhaps participated in concealing their identities».

The Russian national provided services to people linked to the Ryuk ransomware operator, according to OFAC. The agency said she «laundered more than $2.3 million».

Earlier, Transparency International Russia found that exchanges in Moscow-City help Russians launder USDT in the United Kingdom.

The media also reported on Russians circumventing sanctions through crypto firms in Estonia and Lithuania.

Earlier in October, it was reported that Russian citizens were buying on the dark web verified accounts of the British payment-processing service Wirex for crypto operations in the EU.