A sophisticated network of cryptocurrency wallets, linked to Russian state entities and facilitated by fugitive Moldovan oligarch Ilan Shor, has moved over $8 billion in digital assets to circumvent Western sanctions. This revelation, detailed in a report by blockchain analytics firm Elliptic released on September 26, 2025, highlights the evolving tactics employed to bypass international financial restrictions.
The transactions, analyzed over the past 18 months, primarily involved stablecoins, with Tether's USDT being a dominant asset. Elliptic's investigation, based on leaked data, indicates that sanctioned Russian businesses have utilized these digital assets to sustain cross-border trade. Companies controlled by Ilan Shor, an ally of Russian President Vladimir Putin and a figure under U.S. sanctions, are at the center of this operation. Shor reportedly informed Putin in early September 2025 that his firm, A7, had processed approximately $89 billion in international payments over a ten-month period, with a significant portion involving Asian partners. Elliptic's data corroborates that wallets associated with A7 received over $8 billion in stablecoin inflows during the preceding 18 months. A7, established in 2024, was designed to aid Russian firms in evading sanctions and conducting cross-border settlements.
The firm is 49% owned by Promsvyazbank (PSB), a Russian state bank deeply involved with the defense sector, and both PSB and A7 are under U.S. sanctions. Internal communications suggest A7's significant reliance on USDT for its operations. However, concerns over Tether's capability to freeze sanctioned wallets prompted Shor's network to reportedly reconfigure its infrastructure in August 2025. This led to the promotion of their own ruble-pegged stablecoin, A7A5, as an alternative to Tether's centralized controls, though this initiative has seen limited success with a supply of only $496 million.
The report also touches upon the broader context of sanctions evasion through cryptocurrency. The Russian-based exchange Garantex, previously sanctioned for processing illicit transactions, has been a focal point in these discussions. Despite regulatory actions, exchanges like Garantex have demonstrated resilience, adapting their operations to continue facilitating financial flows. The U.S. Treasury has taken action against Garantex and its successor, Grinex, as well as associated companies and executives, underscoring the ongoing efforts to combat illicit finance. Furthermore, U.S. senators have voiced concerns about USDT's role in sanctions evasion, highlighting the persistent challenges in regulating the digital asset space. The situation underscores a global effort to adapt sanctions regimes to the complexities of digital finance, with blockchain analytics firms like Elliptic playing a crucial role in exposing these intricate networks. The interconnectedness of these financial flows, from state-linked entities to fugitive oligarchs and cryptocurrency exchanges, reveals a complex ecosystem designed to circumvent established international financial controls.