Russian Cryptocurrency Platforms Create Elliptic Flags Network to Evade Sanctions

A collection of cryptocurrency exchanges associated with Russia is assisting users in transferring funds beyond the reach of Western financial sanctions, as detailed in a report published on Saturday by blockchain analytics company Elliptic.

Key Takeaways:

• Elliptic has identified five crypto exchanges linked to Russia that offer methods to circumvent Western sanctions.
• Only one of these platforms is officially sanctioned, yet several have facilitated substantial transactions with restricted entities.
• Transaction activity has migrated across various services, indicating that enforcement actions redirect flows rather than completely stop them.

The analysis highlights five trading platforms, most of which are not officially sanctioned, that continue to provide avenues for high-volume cryptocurrency transactions outside the purview of the conventional banking system.

This information comes as European officials contemplate stricter measures, including a possible comprehensive ban on cryptocurrency transactions involving Russia, due to concerns that new platforms are emerging to take the place of previously targeted operators.

Elliptic: Nearly 10% of Bitpapa Transactions Linked to Sanctioned Entities

Among the exchanges reviewed, only the peer-to-peer marketplace Bitpapa is subject to US sanctions.

The US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the platform in March 2024 for alleged evasion of sanctions.

Elliptic discovered that approximately 9.7% of Bitpapa’s outgoing transactions were associated with sanctioned entities and that the exchange frequently changed wallet addresses to complicate monitoring efforts.

The report also points out ABCeX, an unsanctioned exchange based in Moscow’s Federation Tower, the same location previously occupied by Garantex before US authorities seized its domains in March 2025.

Elliptic estimates that ABCeX has processed at least $11 billion in cryptocurrency, with significant transfers directed to Garantex and another exchange, Aifory Pro.

JUST IN: European Union proposes banning all crypto transactions with Russia to prevent sanctions evasion. pic.twitter.com/4FlGZJJorB

— Watcher.Guru (@WatcherGuru) February 10, 2026

Another instance involves Exmo, which stated it exited the Russian market following the 2022 invasion of Ukraine by divesting its regional operations to a separate entity, Exmo.me.

Elliptic’s analysis indicates that operational connections persist: both services seem to share custodial infrastructure and pooled hot wallets.

The firm recorded over $19.5 million in transactions between Exmo and sanctioned exchanges, including Garantex, Grinex, and Chatex.

Rapira, registered in Georgia but with an office in Moscow, was also noted for transferring over $72 million directly to the sanctioned exchange Grinex.

Reports indicate that Russian authorities raided Rapira’s offices in late 2025 due to suspected capital transfers to Dubai.

The fifth platform, Aifory Pro, provides cash-to-crypto services in Moscow, Dubai, and Turkey.

The company reportedly offers virtual payment cards funded with USDT that enable Russian users to access services restricted by Western providers. Elliptic also traced nearly $2 million from Aifory Pro to the Iranian exchange Abantether.

Sanctions Shift Activity, Illicit Crypto Volume Hits Record High

Researchers assert that the network demonstrates how enforcement actions can shift activity rather than eliminate it.

Following the closure of Garantex, transaction volumes increased on other exchanges, according to data from various analytics firms.

Chainalysis reported that illicit crypto addresses received a record $154 billion in 2025, while TRM Labs provided a similar estimate of $158 billion.

As previously reported, Russia’s industrial crypto mining sector continued to grow in 2024, with the country’s two largest operators, BitRiver and Intelion, generating a combined $200 million in revenue and accounting for over half of the legal market.

The post Elliptic Flags Network of Russian Crypto Platforms Bypassing Sanctions appeared first on Cryptonews.