Cryptocurrency Exchanges in Russia Thrive Despite Sanctions Clampdown

A recent analysis by blockchain insights firm Elliptic has uncovered that five cryptocurrency exchanges associated with Russia are facilitating users in bypassing Western financial sanctions. The report highlights these exchanges as significant players in processing large-scale transactions away from the traditional financial sector, potentially undermining global sanctions enforcement efforts.

What Are the Sanctions Allegations?

Among the scrutinized platforms, Bitpapa is the only peer-to-peer crypto exchange currently sanctioned by the US Treasury. The US Office of Foreign Assets Control (OFAC) added Bitpapa to its sanctions list in March 2024, accusing it of enabling sanctions evasion through its services. Elliptic’s findings noted that approximately 10% of Bitpapa’s transactions involved entities under sanction, and observed frequent wallet address changes to avoid tracing.

What Are the Specific Findings on ABCeX and Exmo?

ABCeX, based in Moscow and free from sanctions, was reported to have processed at least $11 billion in cryptocurrency transactions. Substantial amounts were reportedly directed to previously blacklisted entities like Garantex and Aifory Pro. Remarkably, Garantex and ABCeX had shared the same location at one point.

Exmo, another exchange under analysis, supposedly divested its Russian operations following the 2022 conflict with Ukraine. However, Elliptic discovered that operational connections remain between Exmo’s original platform and Exmo.me, suggesting shared infrastructure and wallets. Approximately $19.5 million in transactions were tracked between Exmo and sanctioned exchanges, showing links to platforms like Garantex, Grinex, and Chatex.

Georgia-registered Rapira, operating in Moscow, was found to have sent over $72 million to Grinex directly. The report also mentions regulatory pressure within Russia, with authorities advancing a raid on Rapira’s office by the end of 2025.

Aifory Pro, located in Moscow, Dubai, and Turkey, offers cash-to-crypto services, allowing clients to access virtual payment cards funded by USDT—a major stablecoin. A $2 million transaction to Iran’s Abantether exchange signifies Aifory Pro’s broader engagement in the region.

The report indicates a relentless drive as users migrate to alternative exchanges in the face of sanctions. After the closure of Garantex in 2025, activity flowed to other platforms with a reported $150 billion directed to illegal crypto accounts during the same year, underscoring these networks’ adaptability.

Additional data reveals that Russian mining companies BitRiver and Intelion accumulated over $200 million in revenue in 2024, dominating over half of the local regulated market. Despite reinforced sanctions, Russian crypto operations persevere, maintaining robust systems and substantial income.

Elliptic’s analysts remarked that sanctions failed to decrease trading volumes, instead redirecting them to alternative, less-regulated venues.