Crypto Sanctions: How Governments Are Tracking and Blocking Blockchain Transactions

When we talk about crypto sanctions, government restrictions on cryptocurrency transactions involving banned individuals, entities, or countries. Also known as blockchain sanctions, it's not about banning crypto itself—it's about cutting off access for those under international pressure. This isn't theoretical. In 2024, over $15.8 billion in crypto moved to sanctioned entities, mostly through Bitcoin and decentralized exchanges like Garantex and Nobitex. These aren't random users—they're ransomware gangs, rogue states, and shadow networks exploiting gaps in crypto’s design.

What makes this different from traditional banking? Crypto doesn’t need a middleman. A person in Russia can send Bitcoin to a North Korean wallet without a bank ever seeing it. That’s why regulators like the U.S. Treasury’s OFAC now track wallet addresses the same way they track bank accounts. They’ve added dozens of crypto addresses to their sanctions list, and exchanges that ignore them face fines. But enforcement is messy. Many DeFi protocols don’t verify identities, and cross-chain bridges let funds hop between networks to hide their trail. That’s where OFAC crypto enforcement, the U.S. government’s efforts to penalize crypto platforms that process transactions with sanctioned parties comes in. It’s not about stopping all crypto—it’s about making it harder for bad actors to use it without getting caught.

Meanwhile, countries like Russia are playing their own game. They banned crypto for everyday use but allow it for international trade under strict rules. It’s not a loophole—it’s a strategy. And while some try to use crypto to evade sanctions, others are just trying to survive. The real story isn’t just about crime. It’s about power. Who controls money when borders blur and blockchains don’t care about passports? The answer is shaping up fast: regulators are building new tools, exchanges are forced to comply, and users are learning the hard way that anonymity in crypto is rare and expensive.

Below, you’ll find real breakdowns of how these sanctions play out—what flows through which exchanges, how scams pretend to be legit airdrops to launder funds, and why some crypto projects vanish overnight after drawing regulatory attention. These aren’t opinions. They’re facts pulled from actual transactions, investigations, and market reactions. What you’re about to read is what’s happening now, not what someone thinks might happen next.