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first_img The United States has designated the Russian A7 Network as a transnational criminal organization and plans to cut off its cryptocurrency funding channels

According to Decrypt, the U.S. Department of the Treasury's Office of Foreign Assets Control has designated the Russian shadow banking network A7 Network as a significant transnational criminal organization, listing its relevant addresses in Russia, Kyrgyzstan, Nigeria, and Zimbabwe. The Financial Crimes Enforcement Network has proposed a draft rule that aims to prohibit U.S. institutions from participating in any fund transfers involving the network's "sub-agent companies," covering convertible virtual currencies and not limited to fiat currencies, which is expected to affect approximately 348,000 institutions, including several cryptocurrency exchanges.The proposal is based on six special measures granted by Section 9714 of the Countering Russian Money Laundering Act, ultimately selecting the sixth measure, which is the fund transfer ban. The fifth measure, which restricts correspondent accounts, is considered to have loopholes: research by blockchain intelligence firm TRM Labs shows that A7A5 transactions completely bypass the correspondent banking system, which the Financial Crimes Enforcement Network views as a core aspect of its business model. A7A5 is a ruble-backed token issued by Old Vector, registered in Kyrgyzstan, operating on Tron and Ethereum, with reserves held at the Russian state-owned defense bank Promsvyazbank.The Financial Crimes Enforcement Network stated that between February 2025 and June 2026, over 180 entities handled at least $17.91 billion in A7A5, which historically circulated almost entirely through the sanctioned exchanges Garantex and Grinex, often used as a non-frozen bridge to convert into USDT and then into fiat currency.

first_img Celsius v. Chainalysis most charges dismissed, one incitement charge allowed to proceed

According to Cointelegraph, a U.S. federal judge dismissed most of the claims made by the Celsius litigation administrator against the blockchain analytics company Chainalysis, but allowed one to proceed.U.S. District Judge Margaret Garnett of the Southern District of New York ruled on Tuesday, rejecting Chainalysis's request to dismiss the incitement charge, determining that the complaint sufficiently alleges that Chainalysis was aware that a press release issued by Celsius in 2020 contained false statements and assisted in disseminating that information.The court simultaneously dismissed 12 other claims with prejudice, prohibiting the plaintiffs from amending in this case; another 3 consumer protection claims were dismissed without prejudice, requiring the plaintiffs to amend or notify the court by October 20.The lawsuit was initiated by the Blockchain Recovery Investment Consortium (BRIC), which acts as the litigation administrator and claims manager for Celsius's bankruptcy estate, representing Celsius and some former clients in asserting rights. Chainalysis declined to comment to Cointelegraph.The core of the case revolves around a $3.3 billion "audit." In 2020, Celsius used Chainalysis's Reactor software to calculate its managed asset size and publicly announced the results as an audit.According to the complaint outlined by the court, a Celsius executive initially calculated approximately $1.18 billion in assets using Reactor, which later increased to about $3.3 billion due to adjustments in methodology.
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