Russian Firms Move Billions Using Crypto to Bypass Sanctions: Report

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A recent report from blockchain firm Elliptic reveals how Russian state-linked networks have been using cryptocurrency to avoid Western sanctions and continue trading.

Crypto was used to move money across borders, settle trades and even fund political activity. This helped sanctioned groups keep operating but it still left a digital trail.

Read on to know what’s been happening.

Crypto Helps Bypass Sanctions and Influence Elections

Leaked documents reviewed by Elliptic shed light on fugitive Moldovan politician and businessman Ilan Shor. Shor, who fled Moldova after a $1 billion bank fraud, created the A7 Group in Russia in 2024. The group’s goal was to help businesses bypass sanctions and move money across borders.

Almost half of A7 is owned by state-run Promsvyazbank (PSB), a bank sanctioned for its role in financing Russia’s military, helping evade Western sanctions and linked to vote-buying in Moldova. A7 itself was added to the US sanctions list in August 2025.

In September, Shor said that A7 moved $89 billion across borders in ten months, with over half involving Asian countries.

How A7 Used Cryptocurrency

A7 used a mix of cash, promissory notes, and cryptocurrency to move money.

Shor’s companies heavily relied on cryptocurrency, particularly Tether’s USDT. Chat logs revealed employees discussing multi-million USDT transfers. Because blockchain transactions are transparent, these details helped trace A7’s crypto wallets.

A7 wallets have received at least $8 billion since early 2024, although the real total is probably higher as more wallets may still be unknown. Shor’s crypto infrastructure was likely updated in August 2025, in response to the breach and the potential loss of cryptographic keys.

Shor’s Ruble-Backed Stablecoin

Russian users turned to Tether’s USDT for stability and to bypass sanctions, compared to the volatile Ruble. However USDT’s centralisation became a problem when the U.S. shut down Garantex in March 2025, freezing $26 million.

In response, A7 created the Ruble-backed stablecoin A7A5. It is issued by the Kyrgyz company Old Vector LLC and backed 1:1 by Ruble deposits in PSB. Notably, the total value of all A7A5 transactions to date is $68 billion. PSB, Old Vector and A7A5 have become a key part of A7’s sanctions-busting setup.

The A7 team has sent $2 billion in USDT to exchanges to trade for A7A5 and promote adoption of their Ruble-backed stablecoin.

Crypto-Funded Political Interference

Crypto was also used to fund political interference in Moldova. Chats reveal apps like “Taito”, which paid political activists and was flagged by police for illegal voter bribery in August 2025, and “Callcenter”, used for unauthorized political polling.

Payments for these operations were made in USDT, which allowed them to continue despite sanctions.

Shor’s team also created a Telegram bot to send Toncoin cryptocurrency to verified individuals. Toncoin, integrated into Telegram, makes it easy to move money directly between users.

This case is a clear example of the risks and challenges that come with the growing use of digital assets in global finance.