• The US Office of Foreign Assets Control of the US Department of the Treasury has added two cryptocurrency wallets allegedly connected to a Russian sanctions evasion network to its list of Specially Designated Nationals.
• The wallets are connected to a 22-person network led by Jonatan Zimenkov, the son of Russian arms dealer Igor Vladimirovich Zimenkov.
• The sanctions are meant to methodically and intensively target sanctions evasion efforts around the globe.
The United States Office of Foreign Assets Control (OFAC) has imposed sanctions on two cryptocurrency wallets allegedly connected to a Russian sanctions evasion network. The wallets are linked to Jonatan Zimenkov, the son of Russian arms dealer Igor Vladimirovich Zimenkov, who leads a network of 22 individuals.
The Treasury Department announced the sanctions in a statement released on February 1st. The move is meant to “methodically and intensively target sanctions evasion efforts around the globe”. The statement reveals that the US government is imposing “full blocking sanctions” on Jonatan and his crypto addresses due to his connections with the sanctions evasion network.
The Treasury Department also noted that it has added one Bitcoin (BTC) and one Ether (ETH) address to its list of sanctioned entities. These wallets are believed to be connected to the Zimenkov network, which is accused of supplying technology to a Russian company following the country’s invasion of Ukraine in February 2022. The network is also accused of supporting certain “sanctioned, state-owned Russian defense entities”, including Rosoboronexport and Rostec.
In addition, the US government has also imposed sanctions on Igor Vladimirovich Zimenkov, who is the father of Jonatan. The sanctions are based on the fact that Igor was operating or had operated in the defense and related materiel sector of the Russian Federation economy.
The US Treasury Department’s move to impose sanctions on the Zimenkov network is a clear signal that it is serious about cracking down on sanctions evasion. It is also an indication that the US government is willing to use the latest technology, such as cryptocurrency, to ensure that those who break the law are held accountable. This move is likely to further increase the pressure on those who are involved in sanctions evasion and may lead to more stringent measures in the future.