EU sanctions crypto entities for election interference, disinformation

The European Union has sanctioned individuals linked to an operation that used digital assets to evade sanctions and fund pro-Russian disinformation campaigns.

In a decision announced on Tuesday under the EU’s Common Foreign and Security Policy, sanctions were imposed on nine individuals and six entities. Among them was Kremlin-linked influencer Simeon Boikov, known as AussieCossack, for spreading pro-Russian disinformation.

Boikov was reportedly also responsible for the spread of a fabricated video alleging voter fraud in Georgia in the 2024 US election. According to a Tuesday TRM Labs report, he raised donations through multiple channels, accepting cash and cryptocurrencies.

TRM Labs reports that Boikov engaged with high-risk Russian exchanges that do not enforce know-your-client (KYC) checks and received funds via cash-to-crypto services and darknet markets.

TRM graph showing direct and indirect flows into Boikov’s donation wallet. Source: TRM LabsRelated: US sanctions crypto wallet tied to ransomware, infostealer host

Russian stablecoin business hit

The sanctions were also imposed on A7 OOO, a firm reportedly responsible for efforts to influence Moldova’s 2024 presidential elections and EU accession referendum through vote buying. The firm was founded by Ilan Shor, a fugitive Moldovan oligarch, who reportedly leveraged it to move $1 billion out of three of the nation’s banks.

The United Kingdom already sanctioned A7 OOO in May for its involvement in Moldovan election manipulation. The project is linked to A7A5, a ruble-backed stablecoin, which reportedly emerged as a primary transaction tool on Grinex, a crypto exchange widely seen as the successor to Russia’s sanctioned Garantex platform.

Related: Russia finance ministry official floats country making its stablecoins: Report

Crypto’s role in geopolitical conflict

TRM Labs explains that A7 was initially intended to facilitate cross-border trade following Russia’s invasion of Ukraine. The company suggests that Grinex and A7A5 are likely “tied to the import of dual-use goods from China to Russia through Central Asia.”

Dual-use goods are items — such as technologies, materials, or equipment — that can be used for both civilian and military purposes. Because of their potential role in weapons development or surveillance, their export is often tightly regulated.

These can range from processors that power civilian computers or guide missiles, to materials like cotton, which can be used in clothing or processed into components of gunpowder. TRM Labs commented on the EU’s decision:

“By targeting both individuals and infrastructure that enable these tactics, the EU is signaling a broader strategic shift toward disrupting the full lifecycle of influence operations, from funding flows to narrative dissemination.“

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