A7A5 Stablecoin: How Russia is Moving Billions of Dollars Through Crypto Assets to Break Sanctions

2026-01-23 10:20:23

Source: CoinTribune Original Title: Crypto: The A7A5 Token Enabled Russia to Transfer Billions Despite Restrictions Original Link: https://www.cointribune.com/en/crypto-the-a7a5-token-enabled-russia-to-transfer-billions-despite-restrictions/

Overview

The A7A5 stablecoin enabled Russia to transfer over $100 billion despite Western sanctions. According to data from Elliptic, more than 250,000 on-chain transactions were recorded in less than a year.

How A7A5 Functioned as a Sanctions Workaround

Designed by A7 LLC, a cross-border payments specialist, A7A5 relied on ruble deposits stored in Promsvyazbank. This architecture created a bridge between the ruble and USDT, facilitating access to international crypto markets while keeping funds shielded from prohibitions.

A significant portion of transactions passed through decentralized exchanges like certain DEX platforms, where the protocol acted as a relay between A7A5 and Tether. This structure reduced dependence on traditional banking systems while avoiding regulatory oversight.

The Collapse Under Sanctions

The A7A5 stablecoin’s rise slowed dramatically starting summer 2025. In August, the United States imposed direct sanctions on the asset. The immediate result was a drastic drop in USDT liquidity and trading blocks on major DEX interfaces.

By October, the European Union followed suit, accusing A7A5 of facilitating transactions tied to Russia’s war economy. Despite the blockchain infrastructure remaining operational, the liquidity collapse was severe: daily trading volume plummeted from $1.5 billion to $500 million.

Users also reported frozen crypto wallets on various platforms after funds were traced to A7A5, highlighting the vulnerability of decentralized finance protocols to regulatory pressure.

Key Takeaway

The A7A5 case reveals the fundamental tension between technological innovation and geopolitical constraints. While cryptocurrencies enable disintermediation and bypass traditional intermediaries, they remain vulnerable to regulatory enforcement, liquidity restrictions, and platform-level controls.

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