A new report from blockchain intelligence firm TRM Labs reveals a fundamental schism in how nations deploy cryptocurrency, transforming it from a financial experiment into a core instrument of state power. Authoritarian regimes are aggressively exploiting blockchain’s borderless nature to evade sanctions and fund military ambitions, while democratic governments are channeling the same technology into regulatory oversight and financial modernization. This strategic divergence is quietly reshaping the foundations of global finance and geopolitics.
about Crypto Becomes Geopolitical Tool: Authoritarian vs Democratic State StrategiesOFAC
0 in Finance and 0 in Crypto last weekNorth Korea Crypto Hacks Fuel Weapons Program
North Korea has systematically stolen billions in cryptocurrency through sophisticated hacking operations, according to a new multinational report. These illicit funds are being funneled directly into the country’s weapons of mass destruction programs. Western agencies and private firms are increasingly adapting their defenses against this growing threat.
about North Korea Crypto Hacks Fuel Weapons ProgramUS Seizes $14B Bitcoin from Chinese Pig Butchering Scam
The US government is moving to confiscate 127,271 Bitcoin worth approximately $14.2 billion linked to a massive cross-border ‘pig butchering’ scam operated by Chinese national Chen Zhi. The seized cryptocurrency is slated for addition to the US Strategic Bitcoin Reserve under a recent executive order. However, government shutdown complications and ratification deadlines could jeopardize the transfer.
about US Seizes $14B Bitcoin from Chinese Pig Butchering ScamShapeShift Pays $750K to Settle U.S. Sanctions Violations
The defunct cryptocurrency exchange ShapeShift has agreed to pay a $750,000 penalty to settle allegations from the U.S. Treasury Department that it violated sanctions programs by processing transactions for users in several blacklisted countries. The case, brought by the Treasury’s Office of Foreign Assets Control (OFAC), underscores the persistent regulatory challenges facing the crypto industry and serves as a stark warning about the consequences of inadequate compliance systems, even for platforms that are no longer operational.
about ShapeShift Pays $750K to Settle U.S. Sanctions ViolationsU.S. Sanctions Iran Crypto Network Funding IRGC
The U.S. Treasury has launched a major offensive against Iran’s sanctions evasion infrastructure, sanctioning two Iranian nationals and a network of companies in Hong Kong and the UAE for allegedly moving over $100 million in cryptocurrency from illicit oil sales to fund Iran’s Islamic Revolutionary Guard Corps. This action represents a strategic escalation in targeting cryptocurrency as a core component of Iran’s shadow banking system, with officials explicitly naming stablecoins USDT and TRX as key tools in Tehran’s financial playbook.
about U.S. Sanctions Iran Crypto Network Funding IRGCUS Sanctions Iran’s $100M Crypto Oil Trade Network
The US Treasury has sanctioned two Iranian nationals for orchestrating a $100 million cryptocurrency network to facilitate Iran’s oil sales despite international restrictions. The scheme allegedly supported sanctioned military entities through complex front companies and digital asset transactions. This action underscores growing concerns about crypto’s role in evading traditional financial sanctions.
about US Sanctions Iran's $100M Crypto Oil Trade NetworkU.S. Sanctions $10B SE Asia Crypto Scam Networks
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has sanctioned 19 entities in Southeast Asia linked to organized cyber scam operations that stole $10 billion from Americans in 2024. The networks, operating in Burma’s Shwe Kokko hub and former casino complexes in Cambodia, use forced labor and violence to conduct ‘pig butchering’ scams through fake investment platforms and romance schemes. These criminal enterprises specifically recruit English-speaking workers to target Americans, with some scammers reporting daily victim contact quotas. Stablecoins like USDT are favored by scammers for instant cross-border fund transfers, though investigators can trace and freeze these transactions. While sanctions disrupt criminal operations by forcing exchanges and stablecoin issuers to freeze related funds, experts warn that continuous enforcement pressure is needed as networks often rebrand when targeted.
about U.S. Sanctions $10B SE Asia Crypto Scam NetworksUS Sanctions Myanmar-Cambodia Cyber-Fraud Networks, Targets Crypto Flows
The Office of Foreign Assets Control (OFAC) has designated 19 entities in Myanmar and Cambodia tied to cyber-fraud compounds that target victims worldwide, creating immediate compliance obligations for banks, payment processors, and cryptocurrency exchanges. These sanctions block property and prohibit U.S. persons from dealings with designated entities, while exposing non-U.S. firms to secondary risk if transactions route through American financial systems. The targeted networks operate along the Thai-Myanmar border and rely on dollar-linked stablecoins, particularly USDT on TRON, for scam cash-outs and money laundering. Industry collaboration through initiatives like T3+ has frozen over $250 million in illicit assets since late 2024. The move comes as the FBI recorded $16.6 billion in U.S. cyber-enabled losses for 2024, with investment and romance frauds among the largest categories. Compliance teams must now enhance screening procedures and address ownership structures under OFAC’s 50 Percent Rule.
about US Sanctions Myanmar-Cambodia Cyber-Fraud Networks, Targets Crypto FlowsUS Offers $6M Bounty for Garantex Crypto Exchange Leaders
The US government is offering up to $6 million in rewards for information on executives of the now-defunct Garantex crypto exchange, accused of enabling cybercrime and laundering billions. The Treasury’s OFAC is redesignating Garantex and its successor, Grinex, while Tether has already blocked associated wallets. Authorities in Germany and Finland have seized domains and frozen $26 million in assets. Between 2019 and 2025, Garantex processed $96 billion in transactions, much of it tied to terrorism, drug trafficking, and ransomware. The exchange, originally Estonian-registered but operating from Russia, lost its license in 2022 due to AML failures. Key figures, including co-owner Aleksandr Mira Serda, remain at large, while another executive was arrested in India.
about US Offers $6M Bounty for Garantex Crypto Exchange LeadersUS Sanctions on Garantex May Be Ineffective, Says TRM Labs
The US Treasury’s OFAC has sanctioned cryptocurrency exchange Garantex and its successor Grinex, marking the second such action against Garantex. However, TRM Labs warns that these sanctions may fail, as Garantex appears to have preemptive contingency plans to migrate clients, infrastructure, and funds to new platforms. This raises questions about the effectiveness of sanctions in the rapidly evolving crypto space, where entities can quickly adapt to regulatory crackdowns.
about US Sanctions on Garantex May Be Ineffective, Says TRM LabsU.S. Sanctions Garantex, Grinex Over $100M Illicit Crypto Ties
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned crypto exchange Garantex Europe OU, its successor platform Grinex, three officials, and six Russia- and Kyrgyz Republic-based companies for processing over $100 million tied to illicit activities since 2019. Grinex, formed after Garantex’s March 2025 enforcement actions, was specifically designed to evade prior restrictions. The sanctions also target the A7A5 token, a ruble-linked digital asset used to compensate frozen Garantex user funds. OFAC’s probe revealed $8 million linked to ransomware attacks via Hydra and $100 million tied to darknet markets. The Treasury aims to curb virtual assets’ role in cybercrime and sanctions evasion, reinforcing its 2022 sanctions against Garantex for AML violations.
about U.S. Sanctions Garantex, Grinex Over $100M Illicit Crypto TiesUS Treasury Sanctions Garantex Crypto Exchange Again
The US Treasury’s Office of Foreign Assets Control (OFAC) has once again sanctioned cryptocurrency exchange Garantex Europe, along with its successor Grinex, three executives, and six companies based in Russia and Kyrgyz Republic. OFAC alleges that Garantex processed over $100 million tied to illicit activities since 2019. The Treasury emphasized that digital assets should not be abused for cybercrime or sanctions evasion, signaling continued regulatory scrutiny over crypto exchanges involved in unlawful transactions.
about US Treasury Sanctions Garantex Crypto Exchange Again