UK treats crypto network like a sanctioned bank after claims it processed $90B for Russia
Britain sanctioned 18 people and entities, including HTX and a Kyrgyzstan-linked stablecoin issuer, for allegedly helping Russia evade sanctions. For the first time, the UK used Regulation 17A against crypto exchanges, forcing UK firms to freeze funds and cut correspondent ties, treating crypto rails like banking infrastructure. The main target was A7, a Kremlin-linked network tied to Ilan Shor and sanctioned Russian bank Promsvyazbank, which the UK says moved over $90 billion in 2025 to support military procurement and trade. A7A5, a ruble-backed stablecoin issued by Old Vector and backed by Promsvyazbank deposits, appears to have replaced USDT after Tether freezes hit Garantex in 2025. UK and blockchain data point to large transfers from HTX to sanctioned entities. The move expands Western efforts to disrupt a fast-growing crypto-based sanctions-evasion system.
