A cryptocurrency firm allegedly owned by the owner of a Russian arms trafficking network has transferred digital assets worth more than $4.2 million to a crypto wallet, UNN reports citing The Guardian.
An analysis of crypto records conducted by the Guardian and the International Consortium of Investigative Journalists (ICIJ) reveals a link between a leading cryptocurrency company and Russian-Israeli citizen Jonathan Zimenkov.
He was placed under U.S. sanctions in February 2023 on charges of helping Russian forces during the full-scale invasion of Ukraine, as part of the so-called Zimenkov network. His father, Ihor Zimenkov, heads this arms dealing and sanctions evading network.
Records show that Copper Technologies transferred millions of dollars in cryptocurrency in May 2021 to a wallet belonging to Jonathan Zimenkov. Sanctions against him were imposed 19 months later. At that time, Copper Technologies, which had ties to former Chancellor of the Exchequer Philip Hammond, moved from London to Switzerland.
Although Zimenkov was not subject to sanctions at the time of the transaction, the U.S. Office of Foreign Assets Control believes that the network had been active for several years before the restrictions were imposed on 22 individuals and entities in several countries.
Zimenkov's network was involved in various deals, including Russian cybersecurity transactions, the sale of helicopters abroad, and attempts to supply arms to an unspecified African country.
The blockchain logs show that in May 2021, Copper Technologies transferred more than 1,700 units of Ether to Jonathan Zimenkov, which was worth more than $4.2 million at the time. This transaction consisted of two transfers on the same day. The purpose of these transactions and the source of the digital assets remain unknown. Zimenkov declined to comment on the situation.
The U.S. Treasury Department announced sanctions against the Zimenkovs, claiming that they were involved in projects related to Russia's defense capabilities, including the supply of high-tech devices to sanctioned Russian defense companies.
Igor and Jonathan Zimenkov are known for their ties to Russian defense firms, their cooperation with companies such as Rosoboronexport and Rostec, which have also been targeted by sanctions. The Ministry of Finance said that both men worked with these companies to facilitate the sale of Russian defense products to foreign governments.
Recall
In the first nine months of last year, Russia imported chips that could potentially be used for weapons production worth more than $1 billion. More than half of them were produced by American and European companies