A recent transaction involving the sale of shares in a crypto firm has garnered attention due to allegations of sanctions evasion. Russian oligarch Mikhail Klyukin, a figure subject to sanctions following geopolitical events, has come under scrutiny for reportedly transferring shares worth over £15 million into cryptocurrency as an attempt to circumvent US sanctions. The firm in question, Copper Technologies, found itself at the center of the controversy as it facilitated the sale and conversion of funds.

Copper Technologies, specializing in digital systems for cryptocurrency investment and trading, faced a challenging situation when Klyukin’s presence on its shareholder register posed compliance risks. As a result, the company conducted a transaction that aimed to remove Klyukin as a shareholder. This involved the sale of his shares to a willing buyer, followed by the conversion of the payment into cryptocurrency and its transfer to Klyukin. However, the transaction has raised legal and regulatory concerns, especially regarding potential breaches of US sanctions.

The possible risks and consequences for Copper Technologies are significant, with the potential for facing secondary sanctions if US authorities perceive its involvement in dealing with a sanctioned individual. The use of cryptocurrency for fund transfers further complicates the situation, especially in light of a recent executive order prohibiting structured transactions using digital currencies to circumvent sanctions.

Despite the controversy, Copper Technologies maintains that it sought and adhered to legal advice regarding applicable sanctions laws. Moreover, sources close to Klyukin assert that their companies were in compliance with US sanctions, including the share sale in Copper. However, the situation has placed the company under scrutiny, especially due to the involvement of former UK Chancellor Philip Hammond, who serves as the Chairman of Copper.

In addition to the sanctions controversy, Copper Technologies has encountered challenges in its advocacy of digital assets, with UK financial regulators expressing skepticism. Furthermore, the company’s failure to obtain full approval from the Financial Conduct Authority, combined with the global cryptocurrency market’s downturn, has affected the value of its growth shares.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.