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Elliptic flags crypto exchanges aiding Russia

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crypto Russia

Crypto exchanges maintaining operational or financial connections with Russia continue aiding circumvention of international sanctions, according to an Elliptic report.

Summary

  • Elliptic says some exchanges help Russia bypass sanctions via crypto.
  • Wallet rotation and P2P ruble trades obscure sanctioned flows.
  • Shared custody links Exmo global and Russia-facing platforms.

The platforms provide transaction routes allowing Russian entities to make cross-border payments shielded from traditional banking oversight through ruble-to-crypto conversions.

Bitpapa, sanctioned by the U.S. Office of Foreign Assets Control in March 2024, sends approximately 9.7% of outgoing crypto funds to OFAC-sanctioned targets, including 5% to the sanctioned exchange Garantex.

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ABCeX has processed at least $11 billion in crypto from its Moscow Federation Tower office, previously occupied by Garantex.

Exmo claims to have exited the Russian market but continues sharing custodial wallet infrastructure between its Western-facing and Russian-facing platforms. They conduct over $19.5 million in direct transactions with sanctioned entities.

Bitpapa and ABCeX use crypto wallet rotation to evade tracking

Bitpapa, a peer-to-peer exchange with corporate registrations in the UAE, primarily targets Russian users allowing rubles to be exchanged for crypto.

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Blockchain analysis shows the platform manages wallets to evade sanctions enforcement by constantly rotating addresses.

crypto Russia
Selected illicit and high-risk Russia-centric counterparties of Bitpapa: Elliptic

This prevents transaction monitoring systems from identifying Bitpapa as a counterparty and hiding Russian fund origins.

ABCeX operates both order-book and P2P ruble-to-crypto trading from Moscow’s Federation Tower.

The exchange uses wallet-hiding strategies to prevent crypto transactions from being linked to the service. ABCeX has sent amounts to Garantex and Aifory Pro, which specializes in cash-to-crypto services.

Fiat currencies including rubles are converted into crypto through these services before being transferred across borders without passing through intermediaries.

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The assets can then be converted to local currency through overseas crypto brokers or exchanges. Many exchanges maintain nominal registrations outside Russia while helping in high volumes of trading linked to sanctioned entities.

Exmo shares wallet infrastructure between separate platforms

Exmo claimed to exit the Russian market following the 2022 invasion of Ukraine by selling its regional business to Exmo.me.

Blockchain analysis contradicts this geographic operational separation, showing Exmo.com and Exmo.me continue sharing identical custodial wallet infrastructure.

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Crypto deposited into either platform is pooled into the same hot wallet addresses, while withdrawals for both platforms are issued from matching addresses.

The shared infrastructure shows no real operational separation and allows funds from the Russian-facing platform to co-mingle with the Western-facing entity. Exmo has transacted with Garantex, Grinex, and Chatex.

Rapira, a Georgia-incorporated exchange with a Moscow office, helps in ruble-based trading and has engaged in direct crypto transactions with Grinex totaling over $72 million.

Moscow authorities reportedly raided Rapira’s offices as part of a capital flight investigation to Dubai.

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Aifory Pro operates in Moscow, Dubai, and Turkey, serving as a “Foreign Economic Activity Payment Agent” for international trade between Russia and China.

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Crypto World

Zcash and MemeCore Soar by Double Digits, Bitcoin Touched $76K: Market Watch

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BTCUSD Chart March 17. Source: TradingView


In contrast, Pi Network’s native token continues to bleed out, dipping below $0.18 earlier today.

Bitcoin’s price resurgence that started shortly after the beginning of the war in the Middle East reached a new local peak earlier this morning at $76,000, where the asset faced some resistance.

Many altcoins have produced even more impressive gains, with ETH climbing above $2,300, and XRP touching $1.60. ZEC and M, alongside SIREN, FET, and HAS, have even soared by double digits.

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BTC Tapped $76K

After dipping to $65,600 last Monday, the bitcoin bulls took command of the overall market performance and pushed the asset toward $70,000 by Wednesday. Although it was stopped there at first after the US CPI numbers came out, the cryptocurrency was more persistent and broke above that level on Friday when it even jumped to a ten-day peak of $74,000.

It was stopped there and driven to just over $70,000 during the weekend as the latest developments on the US/Israel vs Iran front unfolded. Nevertheless, they went on the offensive once again as the business week began. In the span of less than 24 hours, the bulls initiated another major rally, driving bitcoin to $76,000 earlier this morning.

This became its highest price tag since early February. After gaining over $5,000 in a day, though, the asset was primed for a correction that pushed it to $74,000 as of press time. Its market cap is close to $1.480 trillion on CG, while its dominance over the alts continues to struggle below 57%.

BTCUSD Chart March 17. Source: TradingView
BTCUSD Chart March 17. Source: TradingView

ZEC, M on the Rise

Ethereum was stopped at $2,400 this morning, but still trades above $2,300 after a 2% daily increase. XRP sits at $1.50 after a similar pump, and it has surpassed BNB in terms of market cap. HYPE has reclaimed the $40 level after a 3.5% rise, while CC is above $0.15.

ZEC and M have stolen the show from the larger-cap alts, both surging by around 16% to $270 and $1.72, respectively. SIREN, FET, and HASH are up by double-digits as well from the lower caps.

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Pi Network’s PI has dumped again in the past 24 hours, losing 10% of value in a drop to $0.18 as of press time.

The total crypto market cap, though, has added $30 billion and is slightly above $2.6 trillion on CG.

Cryptocurrency Market Overview March 17. Source: QuantifyCrypto
Cryptocurrency Market Overview March 17. Source: QuantifyCrypto

 

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Crypto World

Bitcoin Coils Below Six-Week Highs as Gold Stays Vulnerable at $5,000

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Bitcoin Coils Below Six-Week Highs as Gold Stays Vulnerable at $5,000

Bitcoin consolidated recent gains in the face of blanket skepticism over its rebound, while gold threatened to give up $5,000 support.

Bitcoin (BTC) circled $74,000 after Tuesday’s Wall Street open as skepticism increased over BTC price strength.

Key points:

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  • Bitcoin stalls after a trip to $76,000, with short-term targets including a retreat to $68,000.

  • Traders stand by the long-term bear market thesis for BTC/USD.

  • Gold continues to show weakness, risking the loss of $5,000 per ounce support.

Trader warns against “hyping up” BTC price move

Data from TradingView showed cooling BTC price volatility after a run to new six-week highs of $76,000 to start the daily candle.

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

This proved unsustainable as heavy resistance sent BTC/USD lower, leading to concerns of a fakeout for Telegram channel Technical Crypto Analyst.

“Bitcoin is trending upward inside a rising channel and approaching the $74K–$79K resistance zone; while structure remains bullish above the trendline, a rejection from current levels could trigger a pullback toward the $68K support area,” it wrote on the day.

BTC/USDT perpetual contract four-hour chart. Source: Technical Crypto Analyst on Telegram

Traders stayed wary, doubling down on existing doubts about the fate of Bitcoin’s relief rally.

“Still nothing on HTF that suggests the bear market has bottomed. No divs, no volume at lows, no reversal pattern, etc,” trader Roman wrote in his latest analysis on X, referring to higher time frames.

Roman argued that market participants were “hyping up” a comparatively modest uptick in price, and that history demanded a longer bear market.

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BTC/USDT one-week chart. Source: Roman/X

On the latter point, trader Jelle agreed, pointing to the 0.618 Fibonacci retracement level as a key price point.

“Every bear market has been shallower than the one before it – but all of them have happened well below the 0.618 retracement, after months of boring sideways PA,” he told X followers. 

“Even if we don’t get the usual drawdown, I’m pretty sure the boredom chop is coming. Patience.”

BTC/USD chart with Fibonacci retracement level. Source: Jelle/X

Analyst eyes Bitcoin “outperformance” versus gold

Macro conditions were cooler compared to the start of the week. US stocks continued a modest rebound, while WTI crude oil remained below the $100 per barrel mark.

Related: Bitcoin sparks ‘bull trap’ warning after BTC price rejects at $76K

Gold, however, teased a breakdown from $5,000 support, retesting that level for the third consecutive day.

XAU/USD four-hour chart. Source: Cointelegraph/TradingView

Calls for Bitcoin to steal the spotlight from the precious metal thus grew louder.

“Stand by for the outperformance of the decade,” crypto analyst James Easton commented on the weekly BTC/XAU chart.

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BTC/XAU one-week chart. Source: James Easton/X