IRS, Chainalysis Aid Ukraine to Trace Russians Evading Sanctions Using Crypto

Last Updated: October 12, 2023

• The US Internal Revenue Service (IRS) is collaborating with Ukraine to track Russian sanctions evaders.
• This collaboration includes providing access to a Chainalysis tool and specialized training on tracing blockchain transactions.
• The US Justice Department is also investigating Binance over suspected Russia Sanctions violations.

US IRS Collaborates With Ukraine To Trace Russian Sanctions Evaders

The U.S Internal Revenue Service (IRS) has announced it is stepping up its collaboration with Ukrainian law enforcement in order to trace those evading Western sanctions by using cryptocurrencies. This collaboration involves providing the Ukrainian authorities with access to a Chainalysis tool for blockchain forensics as well as specialized training on how to track crypto-related transactions.

Chainalysis Tool For Crypto Tracing

The criminal investigation division of the United States Internal Revenue Service revealed that it is now offering Ukraine access to a Chainalysis tool which will facilitate crypto-related probes and investigations. In addition, the agency has organized both virtual and in-person training sessions for Ukrainian law enforcement on how to trace cryptocurrency transactions, which should improve information sharing and case development between the U.S and Ukraine according to the IRS statement released.

US Justice Department Investigating Binance

A Bloomberg report recently revealed that the world’s largest cryptocurrency exchange, Binance, is currently facing an investigation by the United States Justice Department over suspected violations of Russia sanctions regulations. Michael Gronager, co-founder and chief executive of Chainalysis explained that while cryptocurrency is too illiquid at present time for mass sanctions evasion, smaller scale incidents do occur from time to time which authorities are working hard to identify and stop.

Cryptocurrency Used To Support War Efforts

Gronager also noted that cryptocurrencies have been playing an unprecedented role in war efforts through donations supporting both sides of conflicts; he cited an example of $5 million worth of crypto assets being transferred from wallets sponsoring Russia into approximately 100 pro-Russia groups over the past year alone as evidence of this trend.

Conclusion h2>
The US Internal Revenue Service’s collaboration with Ukraine demonstrates a commitment towards tracking down those evading international sanctions regulations by using cryptocurrencies; an effort which will hopefully be successful in safeguarding not only US financial systems but global economies as well


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