Britain targets Kyrgyz financial institutions, crypto networks aiding Kremlin
The UK has imposed new sanctions on Kyrgyz financial institutions and crypto networks accused of helping Russia evade restrictions.
The UK imposed sanctions on Kyrgyz financial institutions and crypto networks accused of aiding Russian sanctions evasion, war funding, and ransomware activities.
The U.K. imposed new sanctions on Kyrgyzstan’s Capital Bank and director Kantemir Chalbayev, accused of helping Russia pay for military goods. The British authorities have frozen U.K. assets. The Record Media reported that sanctions minister Stephen Doughty warned Moscow is using “dodgy crypto networks” to fund the Ukraine war, stressing the measures aim to tighten pressure on Putin and disrupt illicit financial channels supporting his war chest.
In mid-August, U.S. officials said sanctioned exchange Garantex shifted clients to Grinex to evade restrictions. Investigators tied it to over $100M in illicit funds, including ransomware groups like Conti, Black Basta, Ryuk, LockBit, NetWalker, and Phoenix Cryptolocker.
U.S. officials said Garantex compensated users with A7A5 tokens, issued by Kyrgyz firm Old Vector, to bypass sanctions. Old Vector, Garantex, its co-founders, and related shell companies were also sanctioned.
The Britain authorities also sanctioned the Kyrgyz company Old Vector, which has processed over $51.17 billion since its inception, according to Chainalysis.
The U.K. also expanded sanctions by targeting Altair Holding, which controls Kyrgyzstan’s Keremet Bank, building on earlier U.S. actions. While U.S. sanctions remain stronger due to dollar transfer control, the U.K. move blocks access to London’s financial and legal services.
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