A crypto expert has uncovered a potentially dubious financial tie between XRP and Russia, a global superpower currently facing stringent economic sanctions due to its aggressive military campaign in Ukraine. The revelation contradicts Ripple Labs CEO’s previous statement, refuting the possibility of cryptocurrencies being used to circumvent sanctions imposed by Western powers like the US, UK, and Germany.
What Are The Allegations?
In a 1:48 minute-long video shared via Twitter by user Crypto Hulk, a compelling argument is made to demonstrate that Russia has been in partnership with XRP since 2013, nearly a decade ago.
While the evidence presented by Crypto Hulk establishes a historical connection between Russia and XRP, it offers little insight into whether Russia has utilized the cryptocurrency ecosystem to evade Western sanctions or how active their involvement has been since the imposition of these sanctions.
Ripple Labs CEO’s Response
In a public statement made in 2022, Ripple Labs CEO Brad Garlinghouse responded strongly to similar allegations, addressing concerns surrounding the use of cryptocurrencies to evade sanctions. Garlinghouse emphasized the impracticality of conducting large-scale illicit activities, highlighting the reliance on banking partners for converting cryptocurrencies to fiat currencies. He noted the risks faced by these partners, who risk losing their licenses if individuals on the Office of Foreign Assets Control (OFAC) list manage to go undetected.
Also Read: Ripple vs. SEC News: Ripple’s Defense Lawyer Bids Adieu
Garlinghouse further underscored the rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) policies implemented within crypto exchanges.
The Western Sanctions and Russia’s Consequences
The Western sanctions imposed on Russia were intended as punitive measures in response to Russia’s oppressive actions, exerting pressure on the Russian government. These sanctions encompassed various measures, including the blocking of major Russian banks from using SWIFT, the international payment system.
Consequently, Russia’s ability to conduct international transactions smoothly, engage in global trade, conduct business transactions, and access international financial markets was severely hampered.