Cryptocurrency Firm's $4M Transfer to Sanctioned Russian Raises Regulation Concerns

Cryptocurrency firm Copper Technologies transferred over $4 million in digital assets to a wallet linked to Jonatan Zimenkov, who was later sanctioned for allegedly assisting the Russian military.

Zimenkov is part of an alleged Russian arms-dealing and sanctions evasion network run by his father, Igor Zimenkov.

The transactions occurred in May 2021, before Zimenkov was sanctioned, so Copper did not violate sanctions.

However, the case highlights concerns about anonymity and lack of regulation in cryptocurrency transactions.

Financial companies can file suspicious activity reports on concerning transactions, but crypto rules requiring identity checks have historically been limited.