Crypto Ties Emerge in Russia’s Latest US Sanctions

Russia banned 500 more Americans, including individuals from think tanks, US government agencies and even late night comedians 

article-image

Reidl/Shutterstock modified by Blockworks

share

The number of American citizens under Russian sanctions has been mounting — and a number of high profile crypto industry names are among them. 

Russia’s latest response to the country’s escalating conflict with the US came out on May 19 via the Russian Foreign Ministry. It’s a move effectively intended, per multiple reports, to prevent Americans from traveling to Russia. 

And it follows a recent US measure via the Treasury to step in with the country’s own sanctions, said to intend to “further degrade” Russia’s ability to continue fighting the war in Ukraine.

Names ranging from former President Barack Obama to Seth Meyers and Stephen Colbert have been included on Russia’s latest countermeasure. But it turns out that Russia’s latest move contains a number of crypto native names, too. 

BJ Kang – Binance.US

Former FBI agent BJ Kang clocked in at number 147 on Russia’s banned list.

Once a prominent FBI investigator, Kang in October 2022 was hired by Binance.US — a move that created waves throughout the cryptocurrency industry during its fourth quarter downturn. 

Russia, nonetheless, identified Kang as a current FBI agent on its latest list.

Kang gained a reputation for his involvement in major securities fraud investigations — including playing a key role in Bernie Madoff’s trial. 

He also led the investigation into Raj Rajaratnam, the founder of a hedge fund firm, Galleon, that went through an SEC-instigated insider trading case. 

After 20 years at the FBI, Kang swapped his signature blue jacket for a gig at Binance.US.

Kang at the time was tasked by Binance.US with communicating with the likes of law enforcement, regulators and additional counterparties the US-domiciled entity did business with.

Russia’s rationale for sanctioning Kang wasn’t clear, and a representative from Binance.US didn’t immediately return a request for comment. 

Gurbir Grewal – SEC Enforcement Director

Grewal, who had been serving as the SEC’s director of the regulator’s enforcement division since July 2021, has looked to bring Russian citizens to trial before.

And he’s probed a number of digital asset initiatives.  

The SEC charged five Russians in December 2021 for hacking into computer systems to steal corporate earnings reports before they were made public in an effort to profit off them. 

In a statement around the same time, Grewal said that with the SEC’s latest action, the regulator employed “its powerful analytical tools” and in the process “exposed a highly sophisticated and deceptive scheme to steal and monetize non-public corporate information.” 

Vladislav Klyushin was the only one arrested out of the four co-conspirators and was convicted in February by a Boston federal jury. He faces up to 30 years in prison, CNN reported.  

In a September 2022 speech discussing enforcement philosophy, Grewal deemed crypto the “digital elephant in the room.”

“It often seems critics are upset because we’re not giving crypto a pass from the application of well-established regulations and precedents,” Grewal said. “We can’t simply abandon the field when we confront potentially novel issues.”

Grewal has been involved in SEC enforcement actions against the Tron Network (TRX) and crypto exchange Beaxy.

Letitia James – New York Attorney General

Letitia James has taken on a host of crypto industry companies during her attorney general tenure — even if her proximity to Russia is a bit murky. 

The attorney general was ranked 110th on the country’s latest sanctioned list. 

James assumed office in January 2019. Since then, she’s launched investigations into numerous crypto exchanges and sought a number of high profile prosecutions in the process.

James’ office recently probed the New York-based arm of Coin Cafe, coming away with a $4.3 million settlement haul after Coin Cafe admitted to having collected fraudulent fees from its users. 

In March, James sparked a debate between regulators after she became the first to label ether a security during her lawsuit against KuCoin. 

Jared Bernstein – Chair of Council of Economic Advisers

Jared Bernstein ascended to his role as chair of the CEA in February 2023. He was ranked 32nd on Russia’s list. 

Bernstein has long both praised the potential of blockchain technology, but he’s also trumpeted a number of perceived risks of cryptocurrencies in the process. 

“Financial innovation in digital assets offers great potential…but great risks as well,” Bernstein said on CNBC’s Squawk Box in an appearance focused on President Joe Biden’s March 9 executive order on digital assets

Added Bernstein: “Absent adequate guardrails, protections, safeguards, unchecked financial innovation can introduce deep and systemic risk.”

Bernstein’s CEA was also behind the proposed Digital Asset Mining Energy (DAME) tax, which  would levy a 30% tax on electricity used by crypto miners.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Research Report Templates (19).png

Research

Suilend has grown into the top money market and liquid staking provider on Sui. STEAMM, Suilend’s Superfluid AMM, presents a compelling avenue for growing market share within Sui’s DEX landscape and revenue generation for the protocol. Suilend’s multi-product suite position it well for owning market share across key verticals. While current metrics across the Sui ecosystem are likely inflated due to Sui Foundation incentive programs, SEND trades at amongst the lowest multiples in the lend/borrow sector, suggesting that a bull case for continued growth in the ecosystem may be mispriced.

article-image

Strive board member Ben Werkman expects thousands of firms to hold BTC, if only “to protect themselves”

article-image

To date, 12.6 million humans have scanned at a World Orb

article-image

One small step for man, one giant leap for Bitcoin

article-image

Jay Woods, Chief Global Strategist at Freedom Capital Markets, said it would be “very rare” for an acquisition to happen since the IPO may occur as soon as next week

article-image

Sponsored

Money is one of the most consequential pieces of infrastructure, and M0 believes its architecture should serve builders, not extract from them

article-image

The financial backwaters they laughed at might be the only thing keeping the dollar afloat