The EU has imposed a fresh wave of sanctions targeting individuals and entities accused of exploiting cryptocurrency and blockchain technology to destabilise democratic systems.
This move comes as authorities intensify their clampdown on the illicit use of digital assets, even as regulatory frameworks like MiCA usher in more favourable conditions for legitimate crypto use across the bloc.
Six Firms and Nine Individuals Sanctioned Over Crypto Activities
In its latest round of punitive measures, the EU has sanctioned six organisations and nine individuals for leveraging crypto assets to bypass existing restrictions, promote pro-Russian disinformation, and finance activities seen as threats to democratic governance.
Among those named is Simeon Boikov, an Australian-Russian national known as the “Aussie Cossack”, who is accused of disseminating Kremlin-backed narratives related to both the COVID-19 pandemic and the invasion of Ukraine.
Boikov reportedly accepted funds in both cash and digital currencies via high-risk, no-KYC Russian exchanges, including channels linked to the darknet.
According to blockchain intelligence firm TRM Labs, Boikov also financed misinformation campaigns, including one targeting the U.S. electoral process.
Pro-Russian Firm A7 OOO Among Those Targeted
The EU also targeted A7 OOO, a cross-border payments company allegedly linked to Ilan Shor, a pro-Russian Moldovan oligarch. Authorities claim A7 was used to influence Moldova’s 2024 presidential election and its constitutional referendum on EU accession.
Shor, who has been a central figure in various financial scandals, including Moldova’s infamous 2014 bank fraud case that saw $1 billion siphoned from the national economy, is also included in the EU’s latest designations.
According to the European Commission, Shor utilised digital currencies, particularly stablecoins, to evade existing sanctions imposed after Russia’s full-scale invasion of Ukraine.
The use of crypto to covertly fund electoral manipulation and disrupt financial systems remains a key concern for EU regulators.
