The stablecoin, launched in January by a Russian defense lender and a payments firm, has processed over $70.8 billion in transfers.
A business behind a ruble-backed cryptocurrency that is under U.S. and U.K. sanctions showed up as a sponsor of one of the world’s largest crypto conferences in Singapore this week.
The stablecoin, called A7A5, is pegged to the ruble and has been used heavily by Russian users since its launch in January. Despite being part of a sanctioned network, A7A5 was visible at the TOKEN2049 event with a booth, staff wearing its logo, and a speaking slot for one of its executives.
TOKEN2049 is a top-tier global crypto event held annually and registered in Hong Kong. This year, it drew more than 25,000 attendees, over 500 exhibitors, and a lineup of high-profile speakers, including Donald Trump Jr., chairman of U.S. brokerage Cantor Fitzgerald Brandon Lutnick, and senior executives from major crypto companies. The appearance of A7A5 at such a high-profile event came even after it was sanctioned by both Washington and London in August.
A7A5 sponsors TOKEN2049 despite U.S. and U.K. sanctions
The U.S. and Britain said in August that they had sanctioned several companies linked to A7A5, which they described as part of a network designed to help Russians evade Western sanctions. The stablecoin was created in Kyrgyzstan by a Russian defense lender and a payments firm. On the official TOKEN2049 website, A7A5 had been listed as one of more than 20 platinum sponsors. Event staff were seen wearing A7A5-branded shirts, and its director for regulatory and overseas affairs, Oleg Ogienko, appeared on stage to speak about the project.
By 1300 GMT on Thursday, references to A7A5 had been removed from the conference’s website and Ogienko was no longer listed as a speaker after Reuters contacted the event for comment. TOKEN2049’s organizers did not respond to multiple requests for comment about why A7A5 had been included. When approached at the conference, Ogienko confirmed that the operation in Singapore was part of the sanctioned group. “We were sanctioned several times,” he told Reuters on Thursday from the sidelines of the event. He added that A7A5 had no ties to money laundering and complied with Kyrgyz regulations. “We just regularly applied for our participation, and the organisers confirmed the participation (at TOKEN2049),” he said.
Trading volumes surge as sanctions struggle to stop flows
A7A5’s presence at TOKEN2049 underscores how difficult it has been for Western governments to restrict the use of cryptocurrencies in sanctions evasion. Neither Singapore nor Hong Kong has imposed sanctions on the companies connected to A7A5. Three lawyers who specialize in sanctions told Reuters that the U.S. has no jurisdiction in cases where no U.S. persons are involved.
Western sanctions following Russia’s February 2022 invasion of Ukraine, especially the removal of Russian banks from the SWIFT global payment system, have forced Moscow to search for alternative payment channels. A7A5 has quickly become one of them. According to blockchain research firm Elliptic, more than $70.8 billion of A7A5 has been transferred since its January launch, up from $40 billion recorded in July. Elliptic also said the daily number of A7A5 transactions had doubled over the past month. Reuters was unable to independently verify the source of the funds or the purpose of the transfers.
Ogienko, who is based in Russia, told Reuters that A7A5 is mainly used for cross-border payments by Russian companies and their trading partners. He said its target markets are Asia, Africa, and Latin America. “There are many countries who trade with Russia, and some of them, many of them, use our stablecoin… and these are billions of dollars,” he said.
The Singapore event’s scale made the visibility of A7A5 even more striking. TOKEN2049 remains one of the largest industry gatherings, featuring not just high-profile U.S. figures like Donald Trump Jr. but also senior leaders from top crypto companies worldwide.
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