Russia’s Crypto Shadow Network Moves Billions Despite Sanctions Crackdown

• Russia-linked exchanges shift billions despite sweeping Western sanctions
• Elliptic reveals hidden wallet links and cross-border crypto routes
• EU weighs blanket ban as shadow crypto flows expand

Russia-linked cryptocurrency platforms continue to move billions in digital assets even as Western sanctions tighten. According to blockchain analytics firm Elliptic, a cluster of five exchanges now plays a central role in sustaining cross-border crypto flows connected to Russian entities.

The report outlines how enforcement actions have reshaped activity rather than eliminated it. Instead of relying on one dominant platform, trading volumes have dispersed across several mid-sized exchanges. Consequently, monitoring efforts have become more complex for regulators.

Only Bitpapa among the five exchanges currently faces sanctions. The U.S. Treasury’s Office of Foreign Assets Control designated the peer-to-peer platform in March 2024. According to Elliptic, about 9.7 percent of Bitpapa’s outgoing crypto transfers reached sanctioned targets. The firm also observed that Bitpapa frequently rotates wallet addresses to reduce detection.

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ABCeX has emerged as the largest unsanctioned exchange in the review. The company facilitates ruble-to-crypto trading from Moscow’s Federation Tower. That building previously hosted Garantex before U.S. authorities seized its domains in March 2025. Elliptic estimates that ABCeX has processed at least $11 billion in crypto. Significant transaction volumes reportedly flowed to Garantex and Aifory Pro.

Wallet Links and Cross-Border Payment Channels Expand

Blockchain analysis has also raised concerns around Exmo. The exchange said it exited Russia in 2022 after selling its regional arm to Exmo.me. However, Elliptic found that both entities continue to share custodial wallet infrastructure. Deposits reportedly pool into identical hot wallets. Records show more than $19.5 million in direct transactions between Exmo and sanctioned platforms, including Garantex, Grinex, and Chatex.

Meanwhile, Rapira has transferred over $72 million to the sanctioned exchange Grinex. Russian authorities reportedly raided Rapira’s Moscow office in late 2025 over suspected capital flight to Dubai.

Aifory Pro operates cash-to-crypto services across Moscow, Dubai, and Turkey. According to Elliptic, it provides virtual payment cards funded with USDT. This structure enables payments for restricted Western services such as Airbnb and ChatGPT. The exchange also sent nearly $2 million in crypto to Iranian platform Abantether.

Sanctions Pressure Drives Volume Shift

Other analytics firms have identified similar shifts in trading behavior. TRM Labs reported rising volumes at ABCeX and Rapira after Garantex shut down. Additionally, Chainalysis stated that illicit crypto addresses received $154 billion in 2025. TRM Labs estimated the annual figure at $158 billion.

Regulators in the European Union are considering broader restrictions on crypto transactions involving Russia. At the same time, Russia is preparing a domestic regulatory framework that would license local trading platforms.

The findings suggest that Russia’s crypto shadow network continues to adapt. Although sanctions have disrupted major exchanges, billions in digital assets still flow through alternative channels beyond traditional banking oversight.

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