The shocking discoveries of a former Crystal Blockchain employee have shone a light on the company’s alleged clandestine dealings with Russian clients, despite its claims of promoting transparency and adherence to AML regulations. This not only flies in the face of international sanctions against Russia in the middle of the devastating war in Ukraine, but casts a shadow over the entire crypto industry’s commitment to ethical practices.
The Presence of the Crystal Blockchain in the Run-Up to War
Prior to the Russian invasion of Ukraine in February 2022, Crystal Blockchain data services were thriving, with unique solution capturing a significant market share in Eastern Europe - Ukraine, Lithuania, Estonia, and so on. Their technology empowered businesses to detect illicit activities and maintain compliance with financial regulations. They were on the brink of achieving their end goal of becoming the European alternative to the US giant, Chainalysis.
Right around that time, in a turn of events that shook the world, Ukraine was plunged into chaos as Russia launched a devastating invasion, altering the geopolitical landscape and shattering the fragile peace that had once existed. As the conflict escalated, the actions of Crystal Blockchain became increasingly shrouded in mystery and controversy, raising concerns about their true allegiances and motives in the midst of the rapidly unfolding crisis.
The Contrasting Images of Crystal Blockchain's Public Face and Hidden Motives
Despite publicly announcing the termination of its business relations with Russian clients after the events of February 2022, which marked the beginning of the devastating Russian invasion of Ukraine, Crystal Blockchain and its partner companies, AMLbot, Getblock, and Alfabit, allegedly continued to cater to the Russian market. This apparent discrepancy between the company’s public stance and actual practices raised serious concerns about its commitment to transparency and ethical conduct.
Among central figures in this unfolding drama are one of Crystal Blockchain's own leader, Marina Khaustova, whose actions, coupled with the company's ties to Bitfury Group, founded by Valery Vavilov, paint a damning picture of betrayal and complicity in the face of one of the greatest humanitarian crises of our time.
Indications that Crystal Blockchain Continued to Work with Russia
A significant amount of evidence points to Crystal's alleged ongoing collaboration with Russian entities. In a disclosure that could put him in danger, the whistleblower exposed Crystal Blockchain’s alleged involvement with the shadowy Garantex exchange. This exchange, nestled in the heart of Moscow’s financial underbelly, reportedly facilitated a staggering $1 billion in dirty money transactions per month, allowing Russians to sidestep international sanctions and profit from illicit activities.
Crystal Blockchain had no moral or legal right to serve Russia and its clients by helping them circumvent sanctions. This complicity extended beyond the large-scale exchanges, with the company’s distribution partners, many of which are based in Russia, providing services that were predominantly used within Russia. Despite the valiant efforts of some Ukrainian companies to support their country’s armed forces, Crystal’s actions were tantamount to aiding and abetting the aggressor state.
The whistlebloweralso revealed that Alfabit and AMLbot were not mere Crystal Blockchain’s distribution partners, but alleged accomplices in Crystal’s illicit dance with sanctions evasion. These shadowy intermediaries provided a convenient smokescreen for Crystal to serve a significant portion of Russian crypto exchanges on Bestchange without raising alarms. AMLbot’s registration in Hong Kong only deepened the intrigue, as it suggested a deliberate effort to shield itself from scrutiny.
The whistleblower further exposed an entire gallery of exchanges that allegedly benefited from Crystal’s illicit partnership with AMLbot, including Quickchange, Rapira, IME Karma, Kupi bit, Laslobit, Master change, Perfect change, Swap Coin, Tyt Cash, and X - obmen. By utilizing AMLbot and Crystal’s data, these exchanges were complicit in Crystal’s betrayal of its moral and legal obligations.
A Call for Justice
Fully aware of the potential consequences of breaking his nondisclosure agreement, and risking his job, the whistleblower decided to make this brave revelation during a time of war, sanctions, and political tensions. Driven by a sense of moral obligation, he called for an investigation and appropriate action against Crystal and its partners, regardless of the personal costs he would face. His courageous decision highlights the importance of speaking truth to power, even in the face of significant risks.
Advocating for More Honesty and Integrity to Restore Faith in the Crypto Industry
Crystal Blockchain’s apparent hypocrisy in dealing with Russian clients, despite publicly claiming to have severed ties with the country, underscores the urgent need for transparency and accountability in the cryptocurrency industry. The whistleblower’s brave decision to expose this contradiction should serve as a wake-up call to those within the industry who value honesty and integrity above profit.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.