A network of crypto wallets connected to Russian state-linked entities helped move more than $8 billion in digital assets to bypass Western sanctions, according to a Sept. 26 report from blockchain analytics firm Elliptic.
The findings draw from a trove of recently leaked data exposing how sanctioned Russian businesses relied on stablecoins—particularly Tether’s USDT—to sustain cross-border trade.
Elliptic traced many of these transactions to companies controlled by Ilan Shor, a sanctioned Moldovan fugitive and ally of Russian President Vladimir Putin.
Shor, who remains under US sanctions, reportedly used digital assets to maintain financial lifelines for Russian entities restricted from the global banking system.
In early September, Shor told Putin during an online conference that his firm, A7, had facilitated 7.5 trillion rubles ($89 billion) in international payments over ten months—more than half of which involved Asian partners. Elliptic’s data confirmed that wallets tied to A7 received over $8 billion in stablecoin inflows over the past 18 months.
Founded in 2024, A7 was designed to help Russian firms evade sanctions and conduct cross-border settlements. The company is 49% owned by Promsvyazbank (PSB), a Russian state bank serving the defense sector.
PSB and A7 remain under US sanctions due to their links to the war economy.
Shift towards Ruble-backed stablecoin
According to Elliptic, leaked internal messages revealed A7’s heavy reliance on USDT for treasury operations and payments.
In one instance, an A7 employee requested a transfer of 2 million USDT, exposing a wallet that had processed roughly $677 million in trades.
However, Tether’s ability to freeze sanctioned wallets became a liability earlier this year when regulators shut down Garantex, a Russia-based exchange, and froze $26 million worth of USDT.
As a result, Shor’s network reportedly overhauled its wallet infrastructure in August 2025. The firm began promoting its own ruble-pegged stablecoin, A7A5, as a workaround to Tether’s centralized controls.
However, this effort has not yielded substantial progress as the digital asset has only $496 million in supply and has processed an estimated $68 billion in transactions.
