U.S. government files first lawsuit against using cryptocurrencies to evade sanctions

The U.S. Department of Justice has filed its first lawsuit against the use of cryptocurrencies to evade sanctions. A federal judge has approved criminal charges against an American accused of transferring more than $10 million worth of bitcoin to cryptocurrency exchanges in sanctioned countries. This country could be Cuba, Iran, North Korea, Syria or Russia. Cryptocurrencies are known for their anonymity, but their public transactions can easily be tracked and individuals identified. The U.S. sanctions also apply to transactions involving cryptocurrencies. According to The Register, the defendants used fiat currency in a U.S. bank account to buy bitcoin on a U.S.-based cryptocurrency exchange and then transfer it to an online payment platform in a sanctioned country.

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