Elliptic flags Russia-linked crypto exchanges over sanctions exposure risks

Several Russian-linked crypto exchanges continue to allow transactions linked to sanctioned entities, according to a report published Friday by blockchain analytics firm Elliptic.

The report outlines how certain platforms enable users to convert rubles into cryptocurrencies, transfer funds across borders outside traditional banking channels, and cash out through overseas brokers or exchanges. Elliptic said these transaction pathways can reduce reliance on the conventional financial system and complicate sanctions enforcement.

Last month, a separate Elliptic report revealed that while Tether’s USDT has become a key asset for Russia to evade Western sanctions imposed after the Ukraine invasion in 2022, transactions with the ruble-pegged stablecoin A7A5 surpassed $100 billion. Since Russia’s full-scale Ukraine invasion, Western governments imposed sanctions targeting energy, finance and strategic goods. The EU froze roughly $250 billion of Russian assets and the U.K., nearly $35 billion.

Elliptic’s report follows another one by TRM Labs last week that showed illicit entities received $141 billion in stablecoins in 2025, the highest in five years, and more than half of which was linked to the ruble-pegged A7A5 token, whose Russian executives dispute claims that their operations are illegal. Sanctions-related activity accounted for 86% of illicit crypto flows, TRM’s report said, with bad actors mostly relying on stablecoin platforms.

Among the exchanges highlighted in Elliptic’s report is Bitpapa, a UAE-registered peer-to-peer platform primarily serving Russian users. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Bitpapa in March 2024.

Elliptic estimated that roughly 9.7% of the exchange’s outgoing crypto flows were sent to sanctioned entities, including about 5% to the Russia-linked exchange Garantex. The firm also alleges that Bitpapa rotates wallet addresses in a manner designed to hinder transaction tracing.

The report also named ABCeX, which operates from Moscow’s Federation Tower, and said it has processed at least $11 billion in crypto transactions, including flows to sanctioned exchanges such as Garantex and Aifory Pro.

Other exchanges cited include Rapira, which Elliptic says processed more than $72 million in transactions with sanctioned exchange Grinex, and Aifory Pro, a service offering cash-to-crypto transactions in Moscow, Dubai and Türkiye.

The findings highlight the ongoing role of crypto infrastructure in cross-border financial activity linked to sanctioned actors, even as regulators increase scrutiny of the sector.