Elliptic flags Russia-linked crypto exchanges over sanctions exposure risks

CoinDesk

by Olivier Acuna

February 23, 2026

AI-Generated Deep Dive Summary

Elliptic has identified several Russia-linked cryptocurrency exchanges that continue to facilitate transactions involving sanctioned entities, raising concerns about sanctions evasion. The report highlights platforms like Bitpapa, ABCeX, and Aifory Pro as key players enabling users to convert rubles into cryptocurrencies, transfer funds outside traditional banking systems, and cash out through overseas brokers or exchanges. This methodology allows for reduced reliance on conventional financial systems and complicates efforts to enforce sanctions imposed by Western governments. Among the exchanges flagged, Bitpapa, registered in the UAE and primarily serving Russian users, has been designated by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) since March 2024. Elliptic estimates that nearly 9.7% of Bitpapa's outgoing crypto transactions are sent to sanctioned entities, including 5% to Garantex, a Russia-linked exchange. The report also reveals that Bitpapa employs wallet rotation techniques to obscure transaction tracing. ABCeX, based in Moscow’s Federation Tower, has processed over $11 billion in crypto transactions, with significant flows directed to sanctioned exchanges like Garantex and Aifory Pro. Other notable exchanges include Rapira, which Elliptic links to $72 million in transactions with Grinex, another sanctioned exchange. These findings underscore the growing role of cryptocurrency platforms in facilitating cross-border financial activities tied to sanctioned actors. The report also highlights the increasing reliance on stablecoins like Tether (USDT) and A7A5, a ruble-pegged token, as tools for evading sanctions. Transactions involving these stablecoins have surged, with A7A5 surpassing $100 billion in volume since Russia’s invasion of Ukraine in 202

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Originally published on CoinDesk on 2/23/2026