1、ELLIPTIC REPORT 2023Using Blockchain Analysis to Mitigate RiskSanctionsCompliance inCryptocurrencies2Sanctions Guide 2023Sanctions Enforcement Ramping Up For the Crypto SpaceSince Elliptic published the first version of this report in May 2019,sanctions activity impacting the crypto space has gone i

2、nto overdrive.In February 2022,the US,EU,UK and other countries imposed major financial and trade sanctions on Russia following its attack on Ukraine.While there has not been evidence of widespread sanctions evasion by Russia using crypto,there are indications that it is exploring avenues such as cr

3、ypto mining to generate revenue.This led the US Treasurys Office of Foreign Assets Control(OFAC)to sanction the Russian mining service BitRiver in April 2022.Russian paramilitary groups fighting in Ukraine have also fundraised using crypto,as weve outlined in our separate“Crypto in Conflict”report.S

4、anctions have been directed increasingly at mixing services such as Blender and Tornado Cash,which the US Treasury sanctioned last year for facilitating North Korean money laundering.Sanctions authorities in the US and UK have also been training their sights on the ransomware ecosystem in an effort

5、to hit back at ransomware gangs.Enforcement for crypto-related breaches of sanctions rules is also heating up,as was demonstrated by the seven-figure US Treasury settlement last year with the Bittrex crypto exchange for apparent violations of sanctions involving countries such as Iran.Amid this rapi

6、dly evolving sanctions landscape,it is critical that cryptoasset businesses and financial institutions consider the impact on their compliance operations.They should also proactively take steps and immediately implement available compliance solutions to mitigate the significant risks involved.Crypto