IRS, Chainalysis Helping Ukraine Track Russians Using Crypto to Evade Sanctions – Bitcoin News
The US Internal Revenue Service (IRS) said it is working closely with Ukraine to help it track crypto transactions of Russian sanctions evaders. The agency provides Ukrainians with access to the Chainalysis tool as well as specialized training for Ukrainian law enforcement.
The IRS offers Ukraine tools from chain analysis to track Russian blockchain transactions
The Criminal Investigations Division of the United States Internal Revenue Service announced it is stepping up its cooperation with overseas counterparts as part of efforts to identify persons and entities evading Western sanctions.
The agency revealed that it is working with blockchain forensics firm Chainalysis and Ukrainian investigators to track Russians who may be using cryptocurrency to hide their assets amid the financial restrictions imposed on Moscow’s invasion of Ukraine.
According to a report by Bloomberg, the IRS is sponsoring Ukraine’s access to a Chainalysis tool that facilitates cryptocurrency investigations. It has also organized training courses for law enforcement authorities in the country, both virtual and in-person, on tracking blockchain transactions.
These efforts are expected to improve information sharing and case development between the United States and Ukraine, the Revenue Service said in a statement. Commenting on the collaboration, IRS Chief of Criminal Investigations Jim Lee confirmed:
Participation tools protect not only the US financial system, but the global economy.
Authorities around the world have issued warnings that sanctioned countries such as the Russian Federation and Iran may use cryptocurrencies to bypass international restrictions. Another Bloomberg report recently revealed that the world’s largest cryptocurrency exchange, Binance, is facing an investigation by the US Department of Justice over suspected violations of Russia sanctions.
According to Michael Groniger, co-founder and CEO of Chainalysis, cryptocurrency is still too illiquid to support collective punishment evasion, but this is happening on a smaller scale. He added that work continues to determine the amount of Russian oligarch’s money flowing through Ukraine.
Groneger also noted that cryptocurrencies are playing an unprecedented role in the war with donations to support both sides. He pointed out as an example that about $5 million was transferred in this way to nearly 100 pro-Russian groups over the past year. Research in March showed that most crypto assets sent from Russian-sponsored wallets reach centralized exchanges.
Ukraine and the United States are working together on other fronts related to cryptocurrency. With the support of US law enforcement, Ukrainian police have disrupted a network of cryptocurrency exchange services suspected of laundering criminal proceeds from ransomware attacks and fraud schemes, and announced the shutdown of 9 of these platforms earlier in May.
Do you think the US and Ukraine will expand their cooperation in tracing Russian crypto transactions? Tell us in the comments section below.
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