Crypto Nightmare: Russian Operative Uses Tether To Fund War Machine

IAndrei Zverevreportedly identified as a Russian agent in China. kalashnikov concernsRussia’s leading small arms manufacturer.

what happened: in use tether (Cryptocurrency: USDT), Zverev successfully transferred millions of dollars to secure electronic components for drones, a key component of Russia’s arsenal for the defense of Ukraine, Wall Street Journal report.

Benzinga contacts Tether CEO Paolo Ardoino For comments.

Kalashnikov, known worldwide for its AK-47 rifle, sought Zverev’s expertise in late 2022 to avoid international sanctions and source critical drone parts from a Hong Kong distributor.

Zverev used Tether to discreetly complete the transaction, despite increasing US efforts to block such transactions.

This case of cryptocurrencies facilitating sanctioned trade is not isolated.

The report further stated that Tether was used to process transactions totaling over $10 trillion in 2023 alone.

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The role of digital currencies in Russian trade, particularly in the acquisition of dual-use goods essential to military supplies, highlights significant loopholes in the enforcement of international sanctions.

The US Treasury acknowledged the loophole and called on Congress to give it authority to regulate trading in USD-denominated stablecoins like Tether.

The call to action comes on the heels of authorities targeting a Moscow-based company for providing Tether-based payment solutions to sanctioned Russian banks, which could address this regulatory gap. Indicates that it is urgent.

Stablecoin issuer Tether Holdings has claimed to be initiating a voluntary policy to freeze transactions related to sanctioned companies.

Despite these measures, Tether’s usefulness in sanctions evasion remains a significant concern, and the US Treasury is increasingly relying on alternative payment mechanisms by Russia to sustain military action against Ukraine. It emphasizes that.

The account, based on interviews and Telegram chat messages between brokers and importers, provides a glimpse into the shadowy world of international trade, where cryptocurrencies play a key role.

what’s next: Benzinga’s upcoming Future of Digital Assets conference, scheduled for November 19th, will focus on issues like Tether in sanctions trade, as industry experts grapple with the challenge of regulating digital assets while fostering innovation. The continued use of digital currencies is likely to be a hot topic.

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