State-owned gold Producer For Being Involved in a Complex Crypto Laundering Scheme.

The U.S. Department of Treasury on Jan. 12 announced another package of sanctions against 300 individuals and entities to “restrict the ability” of the Russian military-industrial base to “take advantage of certain U.S. software and information technology” as the country “completes transition to a full war economy.”

As noted by blockchain intel firm TRM Labs, the Office of Foreign Assets Control (OFAC) also targeted Russian national Andrey Sudakov, who appears to be an employee of U.S.-designated Russian state-owned gold producer Polyus alongside his Hong Kong-based associate Mu Xiaolu for engaging in a “complex, multi-layered laundering scheme whereby payments from the sale of Russian-origin gold were converted into fiat currency and cryptocurrencies through numerous UAE and Hong Kong-based front companies.”

VPower’s announcement of a blockchain-based service | Source: TRM Labs

The Treasury’s press release indicated that Hong Kong-based VPower Finance Security Hong Kong Limited was involved in transporting the Russian-origin gold. TRM Labs noted that VPower also offers blockchain-based logistics services, allowing customers to “customize the collection and delivery of valuables through a mobile application.” It remains unclear if VPower’s crypto-related services were involved in the scheme mentioned by OFAC.