US Government Launches First Case of Cryptocurrency Sanctions Evasion
Payments Platform Run by Defendant
In the first case of its sort, the US government plans to accuse an unnamed individual of knowingly utilising cryptocurrency to avoid sanctions. The government is bringing charges against an unnamed defendant for running an internet payment network in a sanctioned country, according to an opinion made by the case's judge.
Some of these transactions involve cryptocurrency. According to the court complaint,
"The Payments Platform promoted its services as geared to dodge US sanctions, including purportedly untraceable virtual currency transactions."
The defendant also opened an account with a cryptocurrency exchange situated in the United States to buy and sell Bitcoin. They then transferred thousands of dollars to two additional accounts at international exchanges. The defendant used those two accounts to send almost $10 million in Bitcoin between the United States and an undisclosed sanctioned country.
The defendant did not try to hide that his service escaped penalties because he believed cryptocurrency was untraceable.
"Proudly stating the Payments Platform could avoid US sanctions," they said instead.
The defendants were identified as linked to the payment platform by investigators.
The defendant's acts are illegal and fraudulent under the International Emergency Economic Powers Act (IEEPA). These actions also violate the Office of Foreign Assets Control's penalties and regulations (OFAC). It's unknown which sanctioned countries are being investigated. North Korea, Cuba, Iran, Syria, Venezuela, and (arguably) Russia are the only countries targeted by US sanctions.
