UK Sanctions Three Crypto Exchanges Linked to Illicit Russian Funds
The UK government has imposed sanctions on three Kyrgyz cryptocurrency exchanges and two payment platforms suspected of aiding Russian entities in circumventing financial sanctions. The announced measures aim to restrict movement and access to funds for sanctioned parties. Notably, these platforms are linked to the Kremlin-backed A7 financial network, which reportedly transferred approximately $90 billion last year — nearly half of Russia's annual military budget.
Sanctions Announcement and Objectives
On Thursday, the UK Foreign, Commonwealth & Development Office (FCDO) announced sanctions against three cryptocurrency service providers and two payment platforms suspected of assisting Russian entities in evading sanctions.
The aim of these sanctions is to make it more difficult for sanctioned parties to move and access funds, thereby limiting their financial activities.
The Foreign Office noted that the A7 financial network claimed to have moved over $90 billion last year, roughly half of Russia’s annual military spending.
Connections to Crypto Platforms and Chainalysis Findings
Three of the sanctioned service providers are linked to Kyrgyzstan, while two platforms facilitated transactions involving the Kremlin-backed A7 network.
Blockchain analytics firm Chainalysis found that two of the payment processors, Cryptomus and Heleket, received funds from thousands of illicit counterparties, peaking at 900 entities within one month in late 2025.
Additionally, the Kyrgyz exchange TokenSpot was connected to the A7 network. Chainalysis determined that TokenSpot, alongside the Grinex and Meer exchanges, received over $308 million from a single HTX deposit address.
Background and Market Response
In May this year, the UK previously sanctioned Huobi Global, operator of the HTX crypto exchange.
HTX contested the decision, stating that the designation applies solely to Huobi Global as a separate legal entity and that its online exchange and user funds remain unaffected.
Cointelegraph reached out to TokenSpot, Cryptomus, and Heleket for comment but had not received any response at the time of reporting.
Status of the Ruble-Backed Stablecoin A7A5
According to CertiK’s report, the ruble-backed A7A5 stablecoin processed a cumulative $110 billion in onchain transactions by June.
Despite Western sanctions, it continues to grow, indicating increasing activity for this financial instrument.
Why it matters
This development highlights the UK’s efforts to disrupt financial channels enabling Russian entities to evade sanctions. By targeting crypto exchanges and payment platforms linked with the notable A7 network, the move is significant given the scale of transactions involving hundreds of millions to billions of dollars. It complicates access to funds for sanctioned parties and contributes to global coordination against financial misuse, especially in the crypto space where anonymity often masks illicit activity.
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