Deputy US Treasury Secretary Wally Adeyemo told on Tuesday that anyone who tries to help Russia avoid economic sanctions as a result of the Kremlin’s unprovoked attack on Ukraine will be held accountable.
Since Russia’s invasion of Ukraine on February 24, the US and its foreign allies have imposed a bombardment of punitive measures against the country.
The conflict has wreaked havoc on the humanitarian situation, sent shockwaves through financial markets, and increased Russia’s isolation on the international scene.
“We have not seen Russia defy our sanctions in a substantial way to yet,” Adeyemo said on CNBC’s “Street Signs Europe.” “We know they are striving to do so and we know they are going to try and use all means necessary,” he said.
He mentioned cryptocurrencies and opaque shell corporations as possible ways for Russia to get around the restrictions.
“What we want to make clear to crypto exchanges, financial institutions, people, and anybody else who may be in a position to help Russia exploit and dodge our sanctions is that we will hold you accountable,” Adeyemo added.
We will come and locate you, and we will ensure that Russia is unable to circumvent the sanctions that we have imposed in order to make it more difficult for them to wage their unjustified war in Ukraine.”
Concerns about cryptocurrency
His remarks came after the G-7 major economies agreed to prevent the Russian state, elites, proxies, and oligarchs from using digital assets to avoid the impact of international sanctions.
The G-7 group consists of the United Kingdom, the United States, Canada, Japan, Germany, France, and Italy.
Ukraine’s defenses have benefited from the use of digital currencies, with the government receiving millions of dollars in crypto donations. Regulators are concerned, though, that they could be used to circumvent Russian restrictions.
Cryptocurrency users remain anonymous, making them a tempting target for cybercriminals. Experts claim that due to the public nature of the blockchain, an unchangeable record of all digital currency transactions, it is possible to track the movement of funds.
Nonetheless, legislators such as Massachusetts Democratic Senator Elizabeth Warren have pressed crypto exchanges to implement more controls to ensure that sanctioned persons and corporations cannot move their funds into crypto.