US vows to target crypto exchanges that allow sanctioned oligarchs to use their services

The US has said it plans to target cryptocurrency exchanges that help sanctioned oligarchs move dirty money.

The US Department of Justice’s (DoJ’s) KleptoCapture taskforce, which was set up this month to enforce sanctions on Russian oligarchs, is set to prosecute banks and cryptocurrency exchanges that fail to prevent sanctioned individuals from using their services.

At a media briefing a DoJ official warned that banks, financial services companies, and crypto exchanges will find themselves “in the crosshairs.”

The official warned that “actors who stick their heads in the sand, or blind themselves to moving dirty money may face money laundering charges for their role in concealing those proceeds.”

The comments come after the UK said crypto firms are expected to “play their part in ensuring that sanctions are complied with,” as the government warned that it does not differentiate between cryptoassets and other forms of assets.

The statements come amid reports that Russian’s are cashing out their cryptoassets to invest in real estate in the United Arab Emirates (UAE).