A British digital asset firm reportedly transferred millions of dollars in cryptocurrency to a wallet belonging to an alleged Russian arms dealer, who was later sanctioned by the US government.
According to a new Guardian report, cryptocurrency company Copper Technologies allegedly transferred more than $4.2 million in digital assets to a crypto wallet belonging to Jonatan Zimenkov, an Israeli-born Russian citizen.
The transfer reportedly took place about 19 months before Zimenkov faced US sanctions over his alleged role in Russia’s invasion of Ukraine.
In a February 2023 press release, the US Treasury Department’s Office of Foreign Assets Control (OFAC) announced the imposition of sanctions against Jonatan and his father Igor Zimenkov. OFAC said the father and son duo had been involved “in multiple deals for Russian cybersecurity and helicopter sales abroad” while facilitating “Russian defense sales to third-party governments.”
On the same day, OFAC unveiled an Ethereum wallet owned by Jonatan Zimenkov.
Copper reportedly sent approximately 1,700 Ethereum (ETH) to the wallet in two separate transactions in May 2021.
Says a Copper spokesperson:
“Copper takes its compliance, legal and regulatory obligations very seriously and has acted in full compliance with all applicable legal standards, including all applicable sanctions prohibitions in the United Kingdom.”
At the time of writing, ETH is trading at $4,056, indicating that the transferred Ethereum supply is now worth $6.89 million.
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Generated image: Midjourney