April 05, 2022

Can Russia Use Crypto To Evade Sanctions?

29 minutes

Russian Oligarchs are the current topic of conversation when it comes to using cryptocurrency to evade significant sanctions imposed and adopted by global leaders. Could cryptocurrency be the way that illicit actors move their fortunes out of Russia without access to the SWIFT network?

Host, Ian Andrews, CMO at Chainalysis sits down for the inaugural Chainalysis podcast series with colleagues, Kim Grauer, (Director of Research, Chainalysis) and Salman Banaei (Co-head of Policy, Chainalysis) and discuss the potential for Russia to evade sanctions with cryptocurrency and the relation to Russia and the increase of ransomware in the industry.

This panel uses a wealth of Chainalysis data highlighted in the 2022 Crypto Crime report to shed some light on Moscow City as a hub for illicit activity and provides a detailed breakdown of the infrastructure connecting Russia to notorious ransomware organizations.

The transparency of the blockchain is highlighted in the infamous ransomware attack on American soil and policy discussions highlight Russia’s move away from the USA dollar and the role the digital Yuan plays in the China / Russia relationship.

The audience is in for some real life scenarios of the blockchain being compared to traditional bank robberies and the conversation finishes discussing Chainalysis recent announcement of “on-chain” sanctions oracles and API’s to provide transaction monitoring of sanctioned parties to DeFi and beyond.

Timestamps

(0:46) – What Does The Head of Research At Chainalysis Do?

(2:43) – What Does The Head of Policy At Chainalysis Do?

(4:00) – USA Lawmakers are accelerating activity in a sign that crypto is here to stay

(5:00) – The intersection of Russia, ransomware, malware and cryptocurrency

(10:15) – The cross collaboration of illicit ransomware organizations

(12:15) – How ransomware as a service operates as a legitimate yet illegal business model

(13:30) – How crypto money launderers are acting in broad daylight in Moscow City

(15:00) – Are companies prepared to prevent or react to a ransomware attack

(16:00) – How the colonial pipeline ransomware was broken up by law enforcement

(18:00) – Why Russia won’t be able to significantly evade sanctions using cryptocurrency

(21:03) – How Russia is moving further away from settling in USD$ and moving towards Chinese Yuan

(23:15) – Why the digital Yuan going to play a bigger role as alternative payment rail for Russia

(24:39) – How proactive measures to sanction ransomware laundering exchanges out of Russia paved the way for crypto sanction monitoring

(26:00) – How cryptocurrency transaction monitoring is similar to die packs placed in bags of cash at the bank

(27:13) – The release of the Chainalysis on-chain oracle and API to detect sanctions exposure for smart contracts and DeFi protocols

Resources:

How FBI Investigators Traced DarkSide’s Funds Following the Colonial Pipeline Ransomware Attack (Blog): https://blog.chainalysis.com/reports/darkside-colonial-pipeline-ransomware-seizure-case-study/

Russian Cybercriminals Drive Significant Ransomware and Cryptocurrency-based Money Laundering Activity (Blog): https://blog.chainalysis.com/reports/2022-crypto-crime-report-preview-russia-ransomware-money-laundering/

The Chainalysis 2022 Crypto Crime Report: https://go.chainalysis.com/2022-crypto-crime-report.html

Chainalysis launches free sanctions screening tools (Chainalysis Blog): https://blog.chainalysis.com/reports/sanctions-screening-tools/

How Chainalysis Helps Compliance Teams Address Sanctions Red Flags (Blog): https://blog.chainalysis.com/reports/fincen-russia-sanctions-red-flags-chainalysis/

Speakers:

Ian Andrews * Host * (Chief Marketing Officer, Chainalysis) https://www.linkedin.com/in/ianhandrews

Kimberly Grauer (Director of Research, Chainalysis) https://www.linkedin.com/in/kimberly-grauer-a9501144

Salman Banaei (Co-head of Policy, Chainalysis) https://www.linkedin.com/in/banaei

**The above contains links to third-party sites that are not under the control of Chainalysis, Inc. or its affiliates (collectively “Chainalysis”). Access to such information does not imply association with, endorsement of, approval of, or recommendation by Chainalysis of the site or its operators, and Chainalysis is not responsible for the products, services, or other content hosted therein.

Our podcasts are for informational purposes only, and are not intended to provide legal, tax, financial, or investment advice. Listeners should consult their own advisors before making these types of decisions. Chainalysis has no responsibility or liability for any decision made or any other acts or omissions in connection with your use of this material.

Chainalysis does not guarantee or warrant the accuracy, completeness, timeliness, suitability or validity of the information in any particular podcast and will not be responsible for any claim attributable to errors, omissions, or other inaccuracies of any part of such material.

Unless stated otherwise, reference to any specific product or entity does not constitute an endorsement or recommendation by Chainalysis. The views expressed by guests are their own and their appearance on the program does not imply an endorsement of them or any entity they represent. Views and opinions expressed by Chainalysis employees are those of the employees and do not necessarily reflect the views of the company.

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4.7

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April 05, 2022

Can Russia Use Crypto To Evade Sanctions?

29 minutes

Timestamps

(0:46) – What Does The Head of Research At Chainalysis Do?