According to a report of the Blockchain Analytics company chain analysis, jurisdiction and organization sanctioned by the US Foreign Asset Management Bureau (OFAC) received $ 15.8 billion in cryptocurrency in 2024, and 39%of all illegal encryption activities in that year. It took it.
According to this report, residents of sanctions such as Iran have changed into cryptocurrency in a limited economic environment. As a result, Iran Central Central Exchange (CEXS) recorded a surge in use and leakage of “as a trading pattern that proposes capital flight”.
Branch value received by approved corporations and jurisdictions. Source: chain analysis
In 2024, OFAC’s sanctions on encryption aimed at financial infrastructure that supports illegal activities, as shown in the graph below, beyond individuals and small groups.
Program OFAC encryption designation, 2018–2024. Source: chain analysis
Although the total number of subsidiaries sanctioned in 2024 was reduced, the organization’s financial footprints remained practically.
US sanctions against Russia aimed to reduce the use of passwords to fund the war against Ukraine, illegal cyber activities and organized crime networks. However, KB Vostok OOO, a sanctioned Russian unmanned aircraft (UAV) manufacturer, was able to bypass financial blockage.
OnChain survey showed that KB Vostok sold drones with the help of local exchange.
“This opponent handled almost $ 40 million, using a number of deposit addresses in the approved Russian exchange, which handled more than $ 100 million in cryptocurrency to potential the Russian military procurement network It suggests involvement. “
Protect wealth and bypass financial restrictions
The report also connected other unlicensed Russian encryption exchange and sanctions to help the sanctioned organizations to help wash millions of dollars worth of illegal funds.
The number of active Russian language NO-KYC exchanges that provide sanctioned Russian banks and total value. Source: chain analysis
Despite the increase in encryption exchange (KNOW YOUR Your Customer), the overall inflow decreased due to sanctions. According to the report:
“Many individuals and companies in the area are converted to cryptocurrency to preserve wealth, transfer funds across borders, and bypass financial controls imposed by the government. We have confirmed in Iran.”
Leakage of Iran services. Source: chain analysis
In addition, encryption services, such as tornado cash, have a great challenge to implement sanctions, considering the ability to anonymize trading sources. The authorities have temporarily reduced the use of tornado cash, but the chain analysis reported that the use increased in 2024.
“In 2024, the inflow (tornado cash) surged 108% compared to the previous year, continuing the reactionary trend for the first time in the cryptographic crime report last year.”
Tornado cash from January 2022 to December 2024. Source: chain analysis
This increase was due to theft funds made by various hackers, including the screws linked to North Korea.
However, if we focus on compliance with regulations, the exposure of overseas encryption exchange with Iran service is steadily decreasing.
The number of exchanges interacting with Iran service. Source: chain analysis
“Irrational reductions of exchange interactions and exchange interactions refer to the actual impact of compliance measures in limiting exposure to sanctions jurisdiction.” The report said.
The new Trump administration has restored the “maximum pressure” campaign for Iran to be implemented by the US Department of Justice.
magazine: In order to increase the prohibition of corporate encryption, encryption mining HDS: Asia Express