A British cryptocurrency company allegedly involved in evading sanctions transferred $4.2 million in cryptocurrency to a known member of an international Russian arms-trafficking network before he was sanctioned by the US.
Reports indicate that Copper, a crypto infrastructure company, sent the millions to the cryptocurrency wallet of Jonathan Zimenkov, an Israeli-born Russian citizen, blamed by the US Office of Foreign Assets Control (OFAC) that he assisted his father, Igor Zimenkov, in circumventing sanctions and running an arms-dealing consortium.
Igor Zimenkov is believed to be the leader of the Zimenkov Network, accused by OFAC of selling military equipment to developing countries on behalf of Russia, while supporting defense structures that are key to the Russian military-industrial complex.
The OFAC sanction se hard“that”Igor and Yonatan Zimenkov have had direct correspondence with sanctioned Russian defense companies. In addition, they have been involved in numerous Russian cyber security deals and the sale of helicopters abroad“.
According to The Guardian and the International Consortium of Investigative Journalists (ICIJ), in May 2021 Koper transferred 1,700 ETH to Zimenkov’s wallet worth $4.2 million, linking his address to the US sanctioned individuals. Both sources said the weapons network had been operating for years before Zimonkov was sanctioned by the US in 2023.
Regarding compliance, The Guardian said there was no clarity on the purpose of the transactions or the origin of the funds, and stressed that it did not suggest Koper had breached any sanctions. The report specified that Zimenkov was not a customer of Copper, relieving the company of any legal obligation to conduct inspections at the time.
Copper spokesperson assured The Guardian that the company “takes its compliance, legal and regulatory obligations very seriously” and maintains full compliance with all applicable regulatory standards, including UK sanctions prohibitions.
Despite inquiries, Copper reportedly did not respond to questions about her relationship with Zimenkov, who declined to comment when contacted by The Guardian.
Previously, Copper, advised by former UK chancellor Sir Philip Hammond, was involved in helping a Russian oligarch evade US sanctions. The Guardian reported that the crypto company assisted Mikhail Klyukin in selling his 2% stake in Copper, valued at $19 million, in May 2022.
A spokesman for Copper rejected allegations that the company acted as an intermediary in the sale of Klyukin’s shares, saying instead that it was intended to divest itself of shares held by a company linked to a sanctioned person.
