The European Union has penalized individuals associated with an operation that utilized digital currencies to bypass sanctions and finance pro-Russian propaganda efforts.
In a resolution revealed on Tuesday under the EU’s Common Foreign and Security Policy, penalties were enacted on nine individuals and six organizations. Among them was Kremlin-associated figure Simeon Boikov, known as AussieCossack, for disseminating pro-Russian misinformation.
Boikov was reportedly also accountable for circulating a fabricated video claiming voter fraud in Georgia during the 2024 US election. According to a Tuesday TRM Labs analysis, he garnered funds through numerous avenues, accepting cash and cryptocurrencies.
TRM Labs indicates that Boikov interacted with high-risk Russian exchanges that do not implement know-your-customer (KYC) protocols and received money through cash-to-crypto services and darknet markets.
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Russian stablecoin enterprise targeted
The penalties were also levied against A7 OOO, a company allegedly responsible for attempting to sway Moldova’s 2024 presidential elections and EU accession referendum through vote-buying. The organization was established by Ilan Shor, a fugitive Moldovan oligarch, who supposedly utilized it to transfer $1 billion out of three of the country’s banks.
The United Kingdom had already sanctioned A7 OOO in May for its role in manipulating Moldovan elections. The project is connected to A7A5, a ruble-backed stablecoin, which reportedly emerged as a primary means of transaction on Grinex, a crypto exchange widely recognized as the successor to Russia’s sanctioned Garantex platform.
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Crypto’s involvement in geopolitical discord
TRM Labs notes that A7 was originally intended to facilitate international trade following Russia’s incursion into Ukraine. The organization implies that Grinex and A7A5 are likely “linked to the import of dual-use commodities from China to Russia via Central Asia.”
Dual-use items are products — including technologies, materials, or tools — that can serve both civilian and military purposes. Due to their potential use in weapons production or surveillance, their export is often rigorously controlled.
These can encompass anything from processors powering civilian computers or guiding missiles, to commodities like cotton, which can be utilized in clothing or processed into components of gunpowder. TRM Labs commented on the EU’s action:
“By targeting both individuals and infrastructures that facilitate these strategies, the EU is indicating a wider strategic transition towards disrupting the entire lifecycle of influence operations, from funding channels to narrative distribution.“
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