U.S. Sanctions Shake Up A7A5 Stablecoin, Routing $6B in Transactions
U.S. regulators have taken action against several entities linked to the A7A5 stablecoin, including its issuer Old Vector and the crypto exchange Grinex. The moves come amid concerns over illicit transactions and ties to sanctioned individuals.
In August, U.S. authorities sanctioned Grinex, believing it was a successor to Garantex, which facilitated illicit transactions. This led to over $6 billion in transactions being routed through a new A7A5 wallet (TNpJj) to circumvent the sanctions. The A7A5 stablecoin, backed one-to-one by rubles held at Promsvyazbank, has close ties with multiple sanctioned entities, including Grinex and Garantex. Promsvyazbank, with a 49% stake in the A7 cross-border payments network, supports each A7A5 token with a ruble in reserve.
The Kyrgyzstan-based entity Old Vector, which issues the A7A5 stablecoin and is associated with Russian company A7, majority-owned by sanctioned Moldovan oligarch Ilan Shor, was also blocked by U.S. regulations in August 2025. Despite these sanctions, A7A5 was granted formal digital financial asset status by Russian authorities, allowing official trade settlements through Promsvyazbank. In response to the sanctions, over 80% of A7A5's supply was destroyed and reissued.
The U.S. sanctions on entities linked to the A7A5 stablecoin have led to significant changes in its transactions and supply. With over $6.1 billion worth of transactions routed through a new wallet and a majority of its supply reissued, the stablecoin's future remains uncertain amidst ongoing regulatory scrutiny.
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