A recent investigation conducted by the International Consortium of Investigative Journalists (ICIJ) in partnership with the Guardian has uncovered a concerning link between the British crypto custodian Copper and Jonatan Zimenkov, a Russian national who has been sanctioned by the U.S.

According to the report, Copper transferred more than $4.2 million worth of crypto to a wallet associated with Zimenkov, who is a member of an alleged arms-dealing network. Zimenkov was sanctioned by the U.S. in February 2023 for his involvement in deals related to Russian cybersecurity and defense materiel sales.

There is no suggestion that Copper has breached any sanctions or regulations in place at the time of the transaction.

The investigation also revealed that Zimenkov was not a registered client of Copper, raising questions about the cryptocurrency custodian’s due diligence practices. While financial institutions in the UK have the authority to report suspicious transactions, it is unclear whether Copper took any action in this case.

This latest development comes on the heels of a previous report by the Guardian, which exposed a sanctioned Russian banker selling shares in Copper worth $19 million. Copper’s founder, Dmitry Tokarev, has publicly denounced the Kremlin’s actions in Ukraine, emphasizing that the Russian government does not represent all Russians.

Founded in 2018, Copper offers services to companies interested in investing in, trading, or using cryptocurrencies. The company has not issued any public statements regarding the recent revelations at the time of writing.

For more news and updates on the cryptocurrency industry, continue exploring Global Crypto News.

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