The Treasury Department sanctioned five individuals and four entities associated with the TGR Group, an international network of businesses and employees that act on behalf of Russian elites.
Details: The Treasury Department said that, through the TGR Group, Russian elites sought to exploit digital assets—in particular U.S. dollar-backed stablecoins—to evade U.S. and international sanctions, further enriching themselves and the Kremlin. The sanctioned entities also laundered ransomware crypto payments and had extensive transactions with Garantex, a Russian crypto exchange previously sanctioned by the U.S. and UK.
More: The action also identified a Wyoming-based entity owned 50% or more by a sanctioned individual. Earlier this year, President Joe Biden stopped the development of a Chinese-owned bitcoin mine near an Air Force base in Wyoming due to national security risks, and Treasury then implemented stronger rules around real estate investments near military installations.
ICBA View: ICBA has repeatedly warned about the frequent use of stablecoins to evade sanctions and help launder funds, as have administration officials. ICBA recognizes the need for clear guidelines on cryptocurrency and stablecoins and continues urging policymakers to ensure regulatory frameworks effectively address the risks associated with cryptocurrency to safeguard community banks and consumers.
