A recent investigation by blockchain analytics firm Elliptic has revealed a sophisticated network of crypto wallets associated with Russian state-linked entities that facilitated the transfer of over $8 billion in digital assets to circumvent Western sanctions. The findings, which stem from newly leaked data, highlight how sanctioned Russian businesses have increasingly turned to stablecoins, particularly Tether’s USDT, to maintain and sustain international trade operations.
Elliptic traced a significant number of these transactions back to companies owned by Ilan Shor, a Moldovan fugitive under sanctions and a known associate of Russian President Vladimir Putin. Shor, currently sanctioned by the US, reportedly leveraged digital assets to create financial avenues for Russian entities heavily restricted from the global banking framework.
In early September, during an online conference with Putin, Shor disclosed that his firm A7 had successfully facilitated a staggering 7.5 trillion rubles (approximately $89 billion) in international payments over a span of ten months, with more than half of these transactions involving partners in Asia. Data corroborated by Elliptic indicated that wallets affiliated with A7 had received upwards of $8 billion in inflows of stablecoins over the last 18 months.
Established in 2024, A7 was purportedly created as a mechanism for Russian firms to evade sanctions and engage in cross-border settlements. The company is significantly backed by Promsvyazbank (PSB), a Russian state bank identified broadly as serving the defense sector. Both PSB and A7 remain under US sanctions due to their associations with the ongoing conflict-induced economy.
Elliptic’s report unveils A7’s substantial reliance on USDT for its treasury operations and logistical payments. Internal communications indicated a specific request from an A7 employee for a transfer of 2 million USDT, highlighting a wallet that had processed approximately $677 million in trades.
Tether’s capacity to freeze sanctioned wallets posed challenges earlier this year when regulators took action against Garantex, a Russian exchange, freezing $26 million worth of USDT. Consequently, in August 2025, Shor’s network began to restructure its wallet system, shifting its focus towards promoting its own ruble-pegged stablecoin, dubbed A7A5, as a workaround to the restrictions imposed by Tether’s centralized management. However, this initiative has not shown significant results; the new digital asset reported only a supply of $496 million and has facilitated an estimated $68 billion in transactions.
Elliptic’s exploration into these crypto activities sheds light on the interplay between digital currencies and geopolitical maneuvers, illustrating how sanctioned entities are seeking innovative solutions to bypass financial restrictions imposed by Western nations.
