UK Strengthens Russia Sanctions, Targets Kyrgyz Crypto Networks
The UK has strengthened its sanctions against Russia by targeting Kyrgyz financial institutions and crypto networks. The move follows warnings that Russia is using illicit means to fund its war in Ukraine.
The UK has sanctioned Kyrgyz companies Old Vector and Garantex, along with Altair Holding, which controls Keremet Bank. Old Vector, a Kyrgyz company, has processed over $51.17 billion since its inception. Garantex, a crypto exchange, was previously sanctioned by the U.S. for facilitating illicit activities of ransomware groups like Conti, Black Basta, Ryuk, LockBit, NetWalker, and Phoenix Cryptolocker. The UK has also frozen assets of these sanctioned Kyrgyz entities in the UK.
In an attempt to evade sanctions, Garantex shifted clients to Grinex, involving over $100M in illicit funds. The UK has warned that Russia is using 'dodgy crypto networks' to fund the war in Ukraine. Additionally, the UK has sanctioned Kyrgyzstan's Capital Bank and its director Kantemir Chalbayev for helping Russia pay for military goods.
The UK's sanctions on Kyrgyz financial institutions and crypto networks aim to disrupt Russia's efforts to evade sanctions and fund its war in Ukraine. The UK has frozen assets of the sanctioned Kyrgyz entities in the UK, sending a strong message against such activities.
