Searching for crypto assets: sanctions, jurisdictions, and challenges for law enforcement

Tracing cryptocurrencies requires the use of modern technologies and in-depth blockchain analytics. Traditional tools for enforcing creditors' obligations are increasingly insufficient, especially in cases of sanctions circumvention, cross-border transfers, or the use of disguised wallets.

This was emphasized by Oleksandr Chernykh, the chairman of the UNBA Committee on Enforcement of Decisions, during the III National Forum «Bankruptcy and Insolvency in Ukraine».

According to the advocate, the practical organization of the search for debtors' crypto assets using OSINT methods, specialized analytical tools for blockchain, and cooperation with foreign jurisdictions is becoming particularly important. He also drew attention to the difficulties of enforcing Ukrainian court decisions on the territory of the aggressor state.

In this context, O. Chernykh highlighted Russian crypto exchanges as a potential target for future seizures. For example, the turnover of the new Russian exchange Garantex reached over USD 1.66 billion in just two months. According to the speaker, this indicates both large-scale evasion of sanctions through crypto instruments and the existence of liquid assets that can be seized through court or arbitration proceedings.

At the same time, the expert emphasized that in times of war and rapid globalization of digital assets, the modernization of approaches to their search comes to the fore, taking into account international experience, technological solutions, and new legal mechanisms.

The III National Forum «Bankruptcy and Insolvency in Ukraine» was held at the initiative of the National Association of Arbitration Managers of Ukraine (NAAMU) with the support of the EU project «Pravo-Justice». The event brought together judges, arbitration managers, legislators, government officials, and international experts.