On January 12, the U.S. Department of Treasury announced sanctions against 300 individuals and entities to restrict Russia’s military-industrial capabilities amid its transition to a full war economy. Among the targeted was Andrey Sudakov, a Russian national and employee of Polyus, a state-owned gold producer, along with his Hong Kong-based associate Mu Xiaolu. They were implicated in a complex money laundering scheme involving the conversion of gold sale proceeds into fiat currency and cryptocurrencies via UAE and Hong Kong-based front companies.
Additionally, the sanctions targeted Hong Kong-based VPower Finance Security Hong Kong Limited for its involvement in transporting Russian-origin gold. VPower also offers blockchain-based logistics services, raising questions about its role in the laundering scheme. TRM Labs noted that these laundering patterns align with observed trends, such as the involvement of Chinese electronics manufacturers and logistics companies in supporting Russia’s war effort, alongside Russian cryptocurrency traders facilitating payments to Chinese companies.
This move follows a series of sanctions aimed at diminishing Russia’s military capacity, including an earlier sanction in May against the Russian UAV developer OKO Design Bureau, which was reportedly soliciting cryptocurrency donations via a Telegram channel. These actions reflect an ongoing strategy by the U.S. and its allies to weaken Russia’s ability to sustain its aggression against Ukraine.
Source: crypto.news
