 
 
The European Union (EU) has sanctioned certain companies and individuals over their role in utilizing crypto and blockchain technology to undermine democracy. Authorities ramped up efforts to stamp out illicit use of the asset class amid increasing favorable legislation and government leaning. The fresh sanctions come as more use cases emerge for the asset class, including companies turning to crypto reserves.
Six Entities Hit With Sanctions
The EU accused nine individuals and six organizations of leveraging crypto assets to evade sanctions, fund pro-Russian campaigns, among others. The Union sanctioned Simeon Boikov, also known as “Aussie Cossack,” for undermining democracy and spreading Russian narratives relating to the COVID-19 pandemic and the Ukraine invasion.
Over the years, Boikov received donations in cash and digital assets through high-risk, no-KYC Russian exchanges, including darknet activities. According to TRM Labs, he reportedly pushed disinformation about the U.S. elections, paying an influencer to post a fabricated video pointing to voter fraud in Georgia.
Furthermore, the EU sanctioned A7 OOO, a company led by Illan Shor. The oligarch is accused of transferring money to voters in support of candidates in the Presidential election. The company was launched to facilitate cross-border payments after Russia invaded Ukraine. Financial regulators imposed multiple sanctions on Russia following this invasion, leading to a shift towards digital assets, particularly stablecoins.
“According to the EU, A7, established by pro-Russian Moldovan oligarch Ilan Shor (also included in the designation), is linked to efforts to influence the Presidential elections and Constitutional referendum on EU accession held in the Republic of Moldova in 2024. Shor was also involved in the 2014 bank fraud scandal in Moldova that resulted in the loss of USD 1B in bank assets from Moldova’s economy,” TRM Labs wrote.
 
Global regulators have continued to implement rules aimed at preventing illicit cryptocurrency use. In Europe, the introduction of the Market in Crypto Assets (MiCA) legislation has shifted the status quo in favor of clear rules. This ushered in a proper stablecoin regime from licensing, transfers, and custody of assets to protect financial consumers.
Apart from stablecoin use to evade sanctions, these assets were also used in money laundering and terror financing activities. Illicit crypto use weakens investor sentiments as certain investors avoid the asset class. Overall, most firms are turning to the asset class amid harsh macro realities which act as a cushion against previous dips.
Source: https://zycrypto.com/eu-targets-organizations-using-crypto-to-evade-sanctions-and-spread-disinformation/