US Imposes Sanctions on Crypto Addresses Linked to Russian Drone Maker

cryptonews.com:

The US Treasury’s Office of Foreign Assets Control (OFAC) took action against a developer at OKO Design Bureau on May 1, a Russia-based drone maker. OFAC sanctioned the developer and added three crypto addresses associated with the firm to the Specially Designated Nationals (SDN) list.

According to OFAC’s press release, the OKO Design Bureau developer is one of the 300 individuals and entities sanctioned to limit Russia’s access to the global financial system and disrupt its influence in the war against Ukraine, as the country is reportedly using cryptocurrency to evade sanctions imposed by the US and others.

Treasury is taking action to further degrade Russia’s ability to sustain its illegal war against Ukraine. Almost 300 targets are being sanctioned by both Treasury and @statedept for enabling Russia’s acquisition of technology and equipment from abroad. https://t.co/v7K7CzUEqP

— Treasury Department (@USTreasury) May 1, 2024

A report by blockchain investigator Chainalysis revealed that OKO Design Bureau operated a Telegram channel to solicit crypto donations. This channel provided detailed descriptions and videos of its operations, including testing with the Russian Ministry of Defense and deploying unmanned aerial vehicles (UAVs) against Ukraine.

Despite these efforts, OKO Design Bureau’s crypto donation collection amounted to less than $1,000, indicating limited success in fundraising through cryptocurrency.

Interestingly, the sanctioned Russian drone maker case is not isolated, as Chainalysis highlighted that several Russian militia groups explicitly used crypto addresses and donations to fund and drive their war efforts.

In response to these developments, Secretary of the Treasury Janet L. Yellen emphasized that OFAC