U.S. Rep. Michael McCaul (R-TX) is seeking information from the Office of the Director of National Intelligence (ODNI) on whether Russia uses digital assets to evade sanctions.
In his letter to ODNI Director Avril Haines, McCaul asked if the director had any indications thus far that Russia is using digital assets to evade sanctions and to what extent Russian officials and oligarchs can use digital assets like cryptocurrency to evade sanctions as individuals.
“During the House Permanent Select Committee on Intelligence’s hearing on March 8, 2022, you noted that in regard to Russia, cryptocurrencies are “…a concern in relation to trying to avoid sanctions,” but that your assessment was that it would be “challenging” for Russia to completely undermine sanctions through the use of cryptocurrencies. While I agree with your assessment, I am concerned with any extent Russia could use cryptocurrencies or other digital assets, such as stablecoins, CBDCs, and NFTs, to avoid sanctions. It is important to understand any impact that digital assets have on U.S. sanctions and address challenges to their impact in a forward leaning manner,” McCaul, lead Republican on the House Foreign Affairs Committee, wrote in his letter.
He cited, as an example, the claim that North Korea used stolen cryptocurrency to fund its nuclear program and that Iran uses cryptocurrency mining to prop up its sanctioned economy.
“While neither North Korea nor Iran can completely avoid the impact of U.S. sanctions using digital assets, all incidences of sanctions evasion by malign actors are of concern. As such, I am interested to learn more about the details of your assessment on Russia’s ability to evade sanctions using digital assets,” McCaul wrote.