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Sanctioned Rouble-Backed Crypto Firm Sponsors Major Singapore Conference as Token Use Soars

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A company behind a rouble-backed cryptocurrency sanctioned by the U.S. and U.K. appeared as a platinum sponsor at TOKEN2049, one of the world’s largest crypto conferences, held this week in Singapore—underscoring how sanctioned entities continue to operate in global crypto circles.

The firm, A7A5, is based in Kyrgyzstan and runs a stablecoin pegged to the Russian rouble, launched in January by a Russian defense-linked lender and a payments company. Western governments say it is part of a network helping Russia evade sanctions imposed after its 2022 invasion of Ukraine.

Despite being targeted by U.S. and British sanctions in August, A7A5 had a prominent booth at TOKEN2049, where it was initially listed among more than 20 platinum sponsors. Conference staff reportedly wore A7A5-branded shirts, and the company’s director of regulatory and overseas affairs, Oleg Ogienko, even spoke on stage.

Following Reuters inquiries, all references to A7A5 and Ogienko were removed from the event’s website by Thursday afternoon. TOKEN2049 organizers, registered in Hong Kong, did not respond to requests for comment.

Ogienko confirmed that the A7A5 operation in Singapore was part of the sanctioned group, saying: “We were sanctioned several times.” He insisted the company complies with Kyrgyz regulations and denied any role in money laundering. “We just applied for participation, and the organizers confirmed it,” he said.

According to blockchain analytics firm Elliptic, A7A5’s trading volumes have surged, with $70.8 billion transferred since January, up from $40 billion in July. Daily transaction counts have doubled in the past month, suggesting increasing adoption of the token for cross-border transactions.

Ogienko told Reuters the token is used by Russian firms and foreign trade partners, particularly in Asia, Africa, and Latin America—regions where Moscow continues to seek alternatives to Western financial systems. “Many countries who trade with Russia use our stablecoin,” he said. “These are billions of dollars.”

Neither Singapore nor Hong Kong has imposed sanctions on A7A5 or its affiliates, leaving local regulators with little obligation to restrict participation. Legal experts told Reuters that U.S. sanctions lack jurisdiction unless American individuals or institutions are directly involved.

The controversy highlights the difficulty Western authorities face in curbing crypto-based sanctions evasion, as decentralized systems and jurisdictional loopholes allow targeted entities to remain active in the global digital economy.

TOKEN2049, attended by over 25,000 participants, featured top industry figures including Donald Trump Jr., Cantor Fitzgerald chairman Brandon Lutnick, and executives from major crypto firms. Spokespeople for Trump Jr. and Cantor Fitzgerald did not comment.

As A7A5’s presence drew scrutiny, it served as a potent symbol of how geopolitics, regulation, and blockchain technology continue to collide in a financial world increasingly beyond traditional control.

Tether launches USAT stablecoin to expand U.S. footprint

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Tether, the world’s largest stablecoin issuer, announced plans to roll out a new U.S.-based stablecoin called USAT, aimed specifically at American residents. CEO Paolo Ardoino said the project, set to launch by year-end, will strengthen the company’s presence in the U.S. market.

The new venture will be led by Bo Hines, a former White House official and recent advisor to Tether. USAT will be issued by Anchorage Digital Bank, which holds a national trust charter with the U.S. Office of the Comptroller of the Currency. Cantor Fitzgerald will act as custodian and preferred primary dealer. The company will be headquartered in Charlotte, North Carolina.

Tether’s flagship stablecoin, USDT, already dominates globally with a $169 billion market cap, but operates from El Salvador. With the recent passage of the GENIUS Act, which mandates stablecoin reserve disclosures and backing with liquid assets like dollars and Treasuries, Tether said it intends to comply both as a foreign issuer (USDT) and through its U.S.-based USAT.

Ardoino framed the move as necessary to counter competitors “trying to create a monopolistic environment” in the U.S. Hines added that the expansion would be “exorbitant” over the next 12–24 months.

The announcement comes shortly after rival Circle’s blockbuster IPO, which raised over $1 billion. Tether itself has become a significant player in U.S. financial markets, purchasing $33.1 billion of U.S. Treasury bills in 2024, making it the seventh-largest buyer of government debt.

Tether has faced scrutiny in the U.S. before, including a 2021 settlement with the New York Attorney General over reserve transparency and past investigations into compliance practices. Still, with the GENIUS Act providing a clear framework, Tether is positioning itself as a long-term participant in U.S. finance.

U.S. Treasury’s Bessent to Meet China’s He Lifeng in Madrid on Trade, TikTok, and Money Laundering

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U.S. Treasury Secretary Scott Bessent will meet Chinese Vice Premier He Lifeng in Madrid next week for high-level talks covering trade, TikTok, and illicit finance, the Treasury said Thursday. The meetings, set for September 12–18, coincide with Bessent’s trip to Spain and Britain, ahead of his participation in President Donald Trump’s state visit to the UK (Sept. 17–19).

Focus Areas

  • Trade and Tariffs: The talks mark the fourth major in-person meeting between Bessent and He this year, as Washington and Beijing seek to uphold a fragile trade truce. A July meeting in Stockholm resulted in a 90-day tariff pause extension, approved by Trump until November 10. U.S. tariffs on Chinese goods remain steep at ~55%, with agriculture a sticking point. Washington accuses China of shifting farm imports to Brazil and Argentina, undercutting U.S. soybean farmers.

  • TikTok Deadline: ByteDance’s short-video platform faces a U.S. ban unless it is sold to U.S. ownership. Trump extended TikTok’s divestment deadline to September 17. Treasury confirmed the app will be discussed in Madrid, after not featuring in July’s talks.

  • Money Laundering Cooperation: Both sides will address illicit finance, which Washington links to Chinese banks allegedly enabling Russia’s access to military technologies amid the Ukraine war. Treasury retains the authority to sanction Chinese banks involved in such transfers, though it has not yet exercised it.

Broader Context

The Madrid meeting comes as the world’s two largest economies attempt to stabilize relations:

  • Rare earth exports from China to the U.S. were restored under the current truce.

  • However, agriculture and tariffs remain unresolved, with U.S. farmers facing a shrinking share of the Chinese market.

  • Trump has maintained high tariffs on Chinese goods, including those tied to fentanyl supply chain disputes.

The outcome of the Madrid talks remains uncertain, particularly on farm trade or tariff relief, but the inclusion of TikTok and money laundering suggests Washington is broadening the agenda beyond traditional trade disputes.