Five cryptocurrency exchanges are reportedly enabling Russia to bypass international sanctions, filling a void left by the sanctioned Russian exchange Garantex. According to crypto analytics firm Elliptic, these platforms-Bitpapa, ABCeX, Exmo, Rapira, and Aifory Pro-are facilitating Russian ruble-to-crypto conversions, allowing funds to be transferred globally and converted to fiat currencies without intermediaries.
Despite increasing regulatory scrutiny, many of these exchanges, some with nominal offshore registrations, continue to process significant crypto trading volumes linked to sanctioned entities. This network emerged after authorities targeted Garantex last year for its role in illicit activities and sanctions evasion following Russia's invasion of Ukraine.
Bitpapa is identified as the only exchange already under sanctions, designated by the U.S. Treasury for supporting sanctions evasion. Elliptic reports that approximately 9.7% of Bitpapa's outgoing crypto funds are directed to sanctioned targets, with the exchange actively rotating addresses to avoid enforcement.
ABCeX operates from Moscow's Federation Tower, the same location as Garantex, and has processed an estimated $11 billion in crypto, with substantial amounts sent to Garantex and Aifory Pro. Exmo is also reported to remain active in Russia, with its Russian and Western-facing platforms sharing custodial wallet infrastructure, leading to co-mingled funds and over $19.5 million in direct transactions with sanctioned entities.
Rapira, based in Georgia with a Moscow office, has engaged in over $72 million in direct transactions with Grinex, a successor to Garantex. Aifory Pro, serving Moscow, Dubai, and Türkiye, offers virtual payment cards using USDT to bypass restrictions on foreign services in Russia.
Amidst booming digital asset adoption in Russia, regulatory bodies are pushing for faster implementation of crypto regulations. Concurrently, the European Union is considering a sanctions package aimed at banning all crypto transactions with Russia to close off technological avenues.