Policy
US Sanctions A7A5 Ruble-Backed Stablecoin Network for Sanctions Evasion
OFAC targets individuals and entities using crypto to sidestep international sanctions, signaling increased scrutiny of stablecoins in illicit finance.
August 28, 2025, at 1:30 PM
• The US Treasury has sanctioned the issuer of a ruble-backed stablecoin, A7A5, for its role in sanctions evasion.
• The sanctioned network allegedly used A7A5 and other stablecoins like USDT to facilitate cross-border payments for Russian entities.
• The move underscores the growing focus of regulators on the use of cryptocurrencies in illicit finance and the need for robust compliance measures.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned A7 LLC, the creator of the ruble-backed stablecoin A7A5, and other associated entities for their role in a sanctions evasion scheme. These actors are accused of using the stablecoin to facilitate cross-border payments for Russian companies, effectively circumventing international financial restrictions.
The scheme also reportedly involves the use of other stablecoins, such as Tether (USDT), and crypto exchanges like the previously-sanctioned Garantex and its successor, Grinex.
This highlights the broader trend of sanctioned actors leveraging the cryptocurrency ecosystem to move funds and evade oversight. As a result, financial institutions and crypto businesses are facing increasing pressure to enhance their compliance frameworks to identify and mitigate indirect exposure to sanctioned entities and their networks.
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