Updated on 29 May 2024.
The Bitbanker cryptocurrency trading platform has established services that allow customers of sanctioned Russian banks to trade in digital currencies and gain access to the SWIFT system.
Bitbanker, which was established in 2021, has offices in Russia, Turkey, the United Arab Emirates, Kyrgyzstan, and Armenia.
The platform advertises that it offers trading services without verification or a “Know Your Customer” process, which could make it easier for clients to obfuscate their transactions and real identities.
The Bitbanker cryptocurrency trading platform has established services that allow customers of sanctioned Russian banks to trade in digital currencies and gain access to the SWIFT system.
Bitbanker, which was established in 2021, has offices in Russia, Turkey, the United Arab Emirates, Kyrgyzstan, and Armenia.
The platform advertises that it offers trading services without verification or a “Know Your Customer” process, which could make it easier for clients to obfuscate their transactions and real identities.
Source: Bitbanker’s website
Amongst its services, Bitbanker offers users access to the SWIFT system through a Kyrgyz bank, Aiyl Bank, according to a May 2023 Russian language blog post published by the company. The platform refers to Aiyl Bank as its “partner” through which customers can “withdraw U.S. dollars from a foreign bank account via SWIFT.”
A May 2023 Bitbanker blog post advertising the “SWIFT from Bitbanker” connection service. Source: Bitbanker’s website
Fees and commissions from Bitbanker’s SWIFT connection service. Users may transfer up to $1 million. Source: Bitbanker’s website
The SWIFT messaging system allows financial institutions to securely exchange messages about international transactions in a fast and accurate way.
In 2022, the European Union blocked 10 Russian banks from using the SWIFT system, including Sberbank and Bank Otkritie, which have both been sanctioned by multiple jurisdictions.
Sberbank, which is Russia’s largest financial institution by assets, and Bank Otkritie, one of Russia’s largest commercial banks, are among several institutions from which Bitbanker accepts payment from customers on its platform.
Bitbanker’s other services include facilitating crypto-to-fiat exchanges, which allow customers to convert cryptocurrencies into traditional currencies, and vice versa. In a November 2023 promotional video, Bitbanker advertised its facilitation of transactions between customers with accounts at sanctioned Russian banks via its platform.
Bitbanker has promoted a "deposit in Turkish banks" offering on its website and social media accounts, aiming to take advantage of high interest rates at Turkish financial institutions. Bitbanker advertises deposits in major Turkish banks such as Ziraat Bankasi, Akbank, and Denizbank. Bitbanker states that the investment funds are placed "through a subaccount." There is no indication that these Turkish banks have a partnership with Bitbanker.
The U.S., EU, and other governments have warned that Russia may attempt to use digital currencies to mitigate the impact of sanctions, and have taken measures against financial and operational facilitators involved in evasion using virtual currencies.
In a 2022 FAQ, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) warned it would be “closely monitoring any efforts to circumvent or violate Russia-related sanctions, including through the use of virtual currency.” OFAC also noted it would use its enforcement authorities to act against potential violations, including by non-U.S. persons.
In 2022, the European Union blocked 10 Russian banks from using the SWIFT system, including Sberbank and Bank Otkritie, which have both been sanctioned by multiple jurisdictions.
Sberbank, which is Russia’s largest financial institution by assets, and Bank Otkritie, one of Russia’s largest commercial banks, are among several institutions from which Bitbanker accepts payment from customers on its platform.
Bitbanker’s other services include facilitating crypto-to-fiat exchanges, which allow customers to convert cryptocurrencies into traditional currencies, and vice versa. In a November 2023 promotional video, Bitbanker advertised its facilitation of transactions between customers with accounts at sanctioned Russian banks via its platform.
Bitbanker has promoted a "deposit in Turkish banks" offering on its website and social media accounts, aiming to take advantage of high interest rates at Turkish financial institutions. Bitbanker advertises deposits in major Turkish banks such as Ziraat Bankasi, Akbank, and Denizbank. Bitbanker states that the investment funds are placed "through a subaccount." There is no indication that these Turkish banks have a partnership with Bitbanker.
The U.S., EU, and other governments have warned that Russia may attempt to use digital currencies to mitigate the impact of sanctions, and have taken measures against financial and operational facilitators involved in evasion using virtual currencies.
In a 2022 FAQ, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) warned it would be “closely monitoring any efforts to circumvent or violate Russia-related sanctions, including through the use of virtual currency.” OFAC also noted it would use its enforcement authorities to act against potential violations, including by non-U.S. persons.
