Sanctions Evasion via Crypto: Russian Tycoon’s £15M Share Sale Investigated
Mikhail Klyukin, a figure known as a "Russian oligarch," recently faced scrutiny for a transaction involving the sale of more than £15 million worth of shares in a cryptocurrency firm chaired by former UK Chancellor Philip Hammond.
Allegations suggest this move was an attempt to bypass sanctions imposed by the US.
The situation arose following Klyukin’s association with Russian lender Sovcombank’s supervisory board, which led to sanctions due to the Ukraine conflict and the US targeting influential figures close to Vladimir Putin. Klyukin, who owned a significant portion of Copper Technologies, a company specializing in digital systems for cryptocurrency investment and trading, appeared on the White House’s sanctions list in March 2022.
Due to the potential risks posed by Klyukin’s presence on Copper’s shareholder list, the company orchestrated a sale to remove him. Acting as an intermediary, Copper facilitated the sale of Klyukin’s shares to a buyer who paid over £15 million.
The payment was converted into cryptocurrency and transferred to Klyukin, seemingly structured to avoid violating US sanctions prohibiting involvement with sanctioned individuals or the use of US dollars.
Legal experts highlighted potential risks faced by Copper, including secondary sanctions that could penalize non-US entities undermining US sanctions, potentially leading to exclusion from the US financial system.
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The use of cryptocurrency for fund transfers further complicated matters, as President Joe Biden’s executive order explicitly prohibits deceptive transactions using digital currencies to circumvent sanctions.
Copper Technologies insists it complied with all relevant sanctions laws based on legal advice. Sources close to Klyukin claim adherence to US sanctions, including the share sale in Copper.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
