Sanctions Evasion in Crypto: How Blockchain Is Used to Bypass Global Restrictions

When governments freeze bank accounts or block wire transfers, some people turn to sanctions evasion, the act of circumventing financial restrictions imposed by international bodies like the UN or OFAC. Also known as crypto sanctions circumvention, it’s not theoretical—it’s happening right now on blockchains that don’t require permission to use. Unlike traditional banking, where identity checks are mandatory, crypto lets users move value across borders without intermediaries. That’s why it’s become a tool for individuals, entities, and even state-backed actors trying to bypass financial isolation.

Tools like Chainalysis, a blockchain forensics platform used by governments to trace illicit crypto flows and Elliptic, another leading crypto tracing service that flags high-risk wallets are the frontline defense. They don’t stop transactions—they map them. Every transfer from a sanctioned Russian wallet to a mixer, every swap from Bitcoin to Monero on a decentralized exchange, leaves a trail. But the trail gets harder to follow when users move through privacy-focused chains, peer-to-peer platforms, or unregulated exchanges like Slex Exchange—which, despite offering zero fees, lacks the transparency to verify user identities.

It’s not just about individuals. Countries like Cuba, where U.S. sanctions cut off access to global banking systems have turned to crypto out of necessity. Their citizens use Bitcoin to receive remittances, buy medicine, and pay for imports. Meanwhile, places like Egypt have outright banned crypto, not because they oppose the tech—but because they can’t control it. This tension between regulation and survival defines the real-world impact of sanctions evasion. It’s not a gray area—it’s a battlefield where blockchain forensics, regulatory policy, and user behavior collide.

What you’ll find below are real stories of how crypto is used—and caught—when money is blocked. From airdrops tied to sanctioned entities to exchanges that slip through the cracks, these posts show you exactly how the system works, who’s using it, and how authorities are trying to shut it down. No theory. No fluff. Just what’s happening on-chain right now.