According to reports from Bloomberg, U.S. and U.K. authorities are currently looking into cryptocurrency transactions that may have ties to Russia. The transactions, totaling over $20 billion, are suspected to have passed through the Russian crypto exchange known as Garantex. These investigations are being carried out as part of joint efforts to prevent sanctions evasion that could be funding Russia's actions in Ukraine.

The payments that are currently being examined were carried out using the stablecoin Tether (USDT) through the Moscow-based cryptocurrency exchange Garantex. It's believed that these transactions took place after Garantex faced sanctions from both the U.S. and the U.K. for aiding in financial crimes and unlawful activities in Russia.

Since the beginning of the conflict, the administration of U.S. President Joe Biden has aimed to regulate cryptocurrency exchanges such as Garantex. The $20 billion in transactions under review would mark a significant breach of the sanctions put in place against Russia.

The Office of Foreign Assets Control (OFAC) imposed sanctions on Garantex in April 2022, along with darknet marketplace Hydra, labeling Russia as a hotspot for cybercriminal activities. OFAC criticized Garantex for neglecting its responsibilities to combat money laundering and terrorism financing, despite operating from Moscow City's Federation Tower.

With the escalation of tensions in Ukraine, Western countries have intensified sanctions against Russia, particularly focusing on the potential exploitation of cryptocurrencies for bypassing these sanctions. In response to this concern, the U.S. Treasury Department updated its sanctions list in March to include numerous companies and individuals linked to cryptocurrency trading.

Brian Nelson, the U.S. Treasury Undersecretary for Counterterrorism and Financial Intelligence, emphasized the growing trend of Russia utilizing alternative payment methods to evade U.S. sanctions and support the ongoing conflict in Ukraine.