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U.S. Designates Russian A7 Network as Transnational Criminal Organization
The U.S. Department of the Treasury's Office of Foreign Assets Control has officially designated the Russian A7 Network as a significant transnational criminal organization. This designation includes the identification of related addresses in Russia, Kyrgyzstan, Nigeria, and Zimbabwe, marking a significant step in the U.S. government's efforts to combat international financial crime.
In conjunction with this designation, the Financial Crimes Enforcement Network (FinCEN) has proposed a draft rule aimed at prohibiting U.S. entities from engaging in fund transfers involving the network's sub-agent companies. This rule will encompass transactions involving convertible virtual currencies, impacting approximately 348,000 entities, including various cryptocurrency exchanges. The proposal is based on special measures outlined in the Anti-Money Laundering Act, specifically targeting fund transfers as a means to disrupt the network's operations.
Research conducted by blockchain intelligence firm TRM Labs revealed that transactions involving A7A5, a ruble-backed token issued by Old Vector in Kyrgyzstan, have largely circumvented traditional banking systems. The token operates on the Tron and Ethereum blockchains, with reserves held at Promsvyazbank, a Russian state-owned defense bank. Between February 2025 and June 2026, over 180 entities reportedly handled more than $17.91 billion in A7A5, primarily through sanctioned exchanges Garantex and Grinex, which facilitated conversions into USDT and subsequently into fiat currency.
Source: KLEA News