The U.S. OFAC announced sanctions against a Russian citizen for using virtual currency to launder money and transfer funds

ChainCatcher News, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced sanctions against Russian citizen Ekaterina Zhdanova for her role in laundering and transferring funds using virtual currency on behalf of Russian elites. This action aligns with the G7's commitment to combat evasion of sanctions and eliminate loopholes that allow the Russian state, its elites, agents, and oligarchs to use virtual currency to offset the impact of international sanctions.

In March 2022, Ekaterina Zhdanova assisted a Russian client in obfuscating the source of their wealth to transfer over $2.3 million to Western Europe through falsely opened investment accounts and real estate purchases. Zhdanova's services provided Russians with access to Western financial markets, and this type of illicit financial activity can be used to circumvent U.S. and international multilateral sanctions.