Russian Sanctions Take Aim at Prominent Crypto Personalities: Consequences Unleashed
In response to the escalating conflict with the US, Russia has announced measures to prevent Americans, including several prominent figures from the crypto industry, from traveling to the country. These measures are seen as a countermove to the recent sanctions imposed by the US Treasury, which aimed to undermine Russia's ability to continue the war in Ukraine.
Among the individuals sanctioned by Russia are well-known personalities from the crypto industry, along with figures like former President Barack Obama, Seth Meyers, and Stephen Colbert. One notable individual on Russia's banned list is BJ Kang, who was previously an FBI agent known for his involvement in high-profile securities fraud investigations. Despite no longer being an active FBI agent, Russia still identified Kang as a current agent. Kang had joined Binance.US in October 2022, generating significant interest in the cryptocurrency industry.
Another individual on the list is Gurbir Grewal, the former SEC Enforcement Director, who has pursued legal action against Russian citizens in the past and has been involved in investigations related to digital assets. In December 2021, the SEC charged five Russians for hacking into computer systems to gain access to non-public corporate information. One of the co-conspirators, Vladislav Klyushin, was arrested and convicted in February, facing a potential prison sentence of up to 30 years.
Letitia James, the New York Attorney General, is also among those sanctioned by Russia. She has been actively involved in investigating and prosecuting various crypto industry companies. Recently, her office reached a $4.3 million settlement with Coin Cafe, which admitted to fraudulent fee collection from users. James sparked a regulatory debate by classifying ether as a security during a lawsuit against KuCoin.
Jared Bernstein, the Chair of the Council of Economic Advisers, assumed his role in February 2023 and is ranked 32nd on Russia's sanctions list. While Bernstein recognizes the potential of blockchain technology, he has also highlighted the risks associated with cryptocurrencies, emphasizing the need for adequate safeguards and regulations. Under Bernstein's leadership, the CEA proposed the Digital Asset Mining Energy (DAME) tax, which seeks to impose a 30% tax on the electricity used by crypto miners.
