A Russian state-backed cryptocurrency has reportedly moved $6 billion in transactions, defying sweeping US sanctions intended to cut financial networks linked to the Kremlin. Despite restrictions imposed after the invasion of Ukraine, the coin—tied indirectly to the Russian government—has managed to operate at scale, leveraging a network of smaller, less regulated exchange platforms.

After major international crypto exchanges limited or suspended activity with Russian users, hundreds of niche services catering primarily to Russia remained active. These platforms often bypass strict anti-money laundering controls, allowing Russian entities and individuals to trade digital assets outside traditional banking routes. Such exchanges have become crucial for shifting large amounts of cryptocurrency.

While the overall crypto industry is vast, experts note that most Russian-linked transactions are too small to meet broader economic needs. However, for individuals seeking to hide significant wealth, especially those connected to the Kremlin, cryptocurrency offers an attractive avenue for circumventing asset freezes and movement restrictions. The US Treasury and European authorities have responded by targeting high-risk exchanges suspected of facilitating illicit activity and money laundering for Russian actors.

Ransomware and other cybercrime have also become intertwined with these crypto flows. Russian cybercriminal groups have been sanctioned, and authorities are increasingly focused on identifying crypto wallets associated with such schemes. In parallel, pro-Russian paramilitary organizations have raised millions in digital currencies for military goals, exploiting the anonymity and borderless nature of blockchain transactions.

Despite these activities, analysts argue that cryptocurrencies cannot fully replace the conventional financial systems Russia relies on for its economy and imports. Most large-scale transactions remain traceable, and the volatility of crypto markets further limits their strategic usefulness for the Kremlin. Ongoing enforcement actions aim to disrupt crypto’s role as a sanctions evasion tool but underscore the persistent adaptability of digital assets in global finance.