At the time, the US Treasury Department said it was also targeting “companies operating in Russia’s virtual currency mining industry, reportedly the third largest in the world,” noting it was the first time it has “designated a virtual currency mining company.”
The US previously sanctioned Malofeyev in December 2014 for funding “separatist activities in eastern Ukraine” and for his close links to “Aleksandr Borodai, Igor Girkin (a.k.a. Igot Strelkov), and the so-called Donetsk People’s Republic, which have all been previously sanctioned as Specially Designated Nationals (SDNs),” according to a Treasury release at the time.
Malofeyev was again sanctioned by the US on April 20 “for having acted or purported to act for or on behalf of, directly or indirectly,” the government of Russia. The Treasury Department also sanctioned members of Malofeyev’s “vast global network of cut-outs and proxies to attempt to evade sanctions and conduct malign influence activities,” including those involved in pro-Kremlin propaganda.
Those sanctioned include entities in Russia, Moldova, Singapore and a number of Russian individuals, including Malofeyev’s son.