Russian oligarchs and billionaires hit by severe financial restrictions following the country’s invasion of Ukraine are turning to bitcoin, according to a London-based lawyer.
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“The immediate problem they have is where they’re going to move their cash, they certainly don’t want to move it into Russia,” Nigel Kusher, the chief executive law firm W Legal, told the BBC, who’s working with a number of unnamed wealthy Russians.
“Some might purchase bitcoin, it’s really tricky for them,” Kusher said, adding it’s “the only option” for certain Russian oligarchs and billionaires targeted by international sanctions. “No bank in the world, other than a Russian bank will touch you once you’re on the sanctions list, so where else could you put your money?”
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The bitcoin price has surged over the last week as Russian billionaires and oligarchs hit by … [+]
Crypto exchanges around the world have come under pressure to block transactions with Russia over the last week while trading between Russia’s ruble and cryptocurrencies has doubled since the assault on Ukraine began, according to data from Chainalysis, a crypto research company.
Major cryptocurrency exchanges have been asked by Ukraine to block Russian users but have so far resisted calls for a blanket ban on the country, preferring to target individuals on international sanctions lists.
However, while coins held on centralized exchanges such as Coinbase or Binance could be frozen or seized, the relatively anonymous nature of bitcoin and other cryptocurrencies, combined with their decentralized structure, means it’s impossible to lock people out of the system entirely.
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The bitcoin price has seen its price surge by over 20% during the last week.
This week, the U.K. announced economic sanctions designed to cripple Russian state companies and banks, with ministers warning law firms working with oligarchs to dodge sanctions could themselves be targeted. The British government has also unveiled new powers to seize bitcoin and cryptocurrencies.
Earlier in the week, U.S. president Joe Biden hailed western unity in the face of Russia’s attack on Ukraine and warning there could be more economic sanctions on the way during his first State of the Union address to a joint session of Congress.
“We are joining with our European allies to find and seize your yachts, your luxury apartments, your private jets,” Biden said. “We are coming for your ill-begotten gains.”
Yesterday, the European Union added 26 wealthy Russians to its list of sanctioned individuals.
Source: https://www.forbes.com/sites/billybambrough/2022/03/03/sactioned-russian-oligarchs-and-billionaires-have-only-one-option-bitcoin/