FBI capable of blocking Russia's ability to bypass sanctions, says agency director

Only hours after Russia's President Vladimir Putin convened a meeting of the Russian Cabinet to consider the country's response to economic sanctions imposed by the West, the Federal Bureau of Investigation noted that it was capable of blocking Russia’s ability to bypass sanctions using cryptocurrency. Speaking at Capitol Hill, FBI Director Christopher Wray said that it could block Russia’s move to use crypto to circumvent sanctions imposed amid the Russia Ukraine war.

Speaking at the worldwide threats hearing on Capitol Hill on Thursday, FBI Director Christopher Wray said that the Russian government’s ability to circumvent the sanctions with cryptocurrency is overestimated. He said that the FBI could block this with help from fellow intelligence agencies and overseas partners. He further added that Russia is more likely to use fiat currency to survive amid sanctions.

The FBI director said the FBI and its partners had "built up significant expertise" on digital assets and said that there were vulnerabilities in using crypto to get around sanctions. He also cited the department’s recent work in seizing large amounts of tokens as evidence. “The Russians' ability to circumvent the sanctions with cryptocurrency is probably highly overestimated on the part of maybe them and others,” said Wray at the hearing.

“We are, as a community and with our partners overseas, far more effective on that than I think that sometimes they appreciate and there's a lot of expertise in terms of tools and strategies to help block that kind of effort. Ultimately, what they really need to do is get access to some form of fiat currency, which becomes more challenging,” the FBI director said. The comment came only hours after the Russian President called on his cabinet to discuss the sanctions imposed on the country following its invasion of Ukraine.

Putin calls on cabinet to discuss sanctions imposed

After the United States blocked Russian oil imports, Putin told the Cabinet that Russia is complying with its energy supply agreements. He added that after conquering the challenges posed by what he called the West's unjust sanctions, Russia would emerge stronger and more independent. Putin said that there was no alternative to Russia's "special military operation" in Ukraine and that Russia would not accept losing its sovereignty for the sake of short-term economic gain.

Putin claimed that Western sanctions on Russia were unjustified and that Western governments were misleading their own citizens. He predicted that Russia would settle its problems in a calm manner. At the same meeting, Russia's Finance Minister Anton Siluanov stated that the country has taken steps to limit capital outflows and that the country would cover its external loans in roubles.

Image: AP