The U.S. Justice Department, citing a Financial Times report, has filed charges against Russian cryptocurrency entrepreneur Evgeny Vasiliev, accusing him of overseeing a covert network that laundered more than $500 million and facilitated the circumvention of U.S. sanctions on Russia.
The charges, brought by federal prosecutors, allege Vasiliev used a sophisticated web of shell companies and crypto transactions to move large sums through unregulated offshore exchanges. This activity included assisting sanctioned Russian entities, such as oligarchs and defense-linked firms, in avoiding export restrictions and financial tracking efforts.
According to the Justice Department, Vasiliev breached U.S. money‑laundering and export‑control laws between 2018 and 2024. The indictment outlines a pattern of illicit transfers involving multiple jurisdictions and complex blockchain obfuscation techniques.
A senior Justice official, quoted in the Financial Times, stated, “This case targets those facilitating illicit finance through cryptocurrency’s wild frontier.” Vasiliev has pleaded not guilty, and U.S. attorneys are pursuing the forfeiture of his known crypto assets, valued at over $200 million.
What This Means for U.S. Policy and Sanctions Enforcement
Experts say this marks the first major U.S. criminal action against a high-profile Russian crypto entrepreneur since the wave of sanctions following Russia’s 2022 invasion of Ukraine. It highlights Washington’s increasing determination to impose accountability across digital asset channels.
Restricting crypto-based money laundering is a keystone in U.S. efforts to prevent sanctioned individuals and organizations from accessing global financial systems. The Justice Department’s charges combine anti-money laundering statutes with export-control enforcement—notably against equipment labeled TC or military-grade encryption used by sanctioned Russian defense industries.
