Shor, Japarov, and Grinex: Billions Laundered via Kyrgyz Crypto and Russian FSB
- 28.10.2025 07:57
CONTENTS
EU Sanctions Hit Kyrgyz Banks and Crypto Exchanges
The A7A5 Crypto Scandal and Grinex Exchange
Ilan Shor and Russian State Banks Connections
The Story of Garantex and Sergey Mendeleev
FSB and Russian Intelligence in the Crypto Business
Dark Events Surrounding Garantex Staff and Partners
Brutal Murder of Marat Zaripov and Money Laundering in Kyrgyzstan
WhiteBIT Controversies and Kyrgyz Police Corruption
State-Controlled Crypto in Kyrgyzstan and Sanction Implications
Lavish Gifts and Shor’s Ties to Sadyr Japarov
CRYPTO SCANDAL IN BISHKEK: EU SANCTIONS, FSB, AND BILLIONS LAUNDERED
1. EU Sanctions Hit Kyrgyz Banks and Crypto Exchanges
The European Union imposed its 19th package of sanctions targeting Kyrgyz banks and companies suspected of helping Russia launder money via cryptocurrency. Among the targets are the Eurasian Savings Bank, linked to supporters of ex-President Bakiyev, and Tolubay Bank.
Also sanctioned are the Russian cryptocurrency A7A5 and the Kyrgyz exchange Grinex, already under restrictions by the US and UK since August. EU residents are prohibited from engaging in any transactions with these entities, and all assets in the EU will be frozen.
Kyrgyz President Sadyr Japarov condemned the sanctions at the UN General Assembly on September 23 as “unjustified interference,” despite documented involvement of Kyrgyz entities in laundering billions via crypto. FOR EUROPE
2. The A7A5 Crypto Scandal and Grinex Exchange
A7A5 is a unique digital financial asset accredited by the Russian Central Bank, with legal obligations toward asset holders. Surprisingly, the issuance of these stablecoins was handled by the Bishkek-based Old Vector, while trading occurred on Grinex, unaccredited in Russia.
Since 2024, digital financial assets in Russia have been used to bypass sanctions. Through A7A5 on Grinex, billions of dollars were laundered, including transactions involving Kapital Bank in Bishkek.
3. Ilan Shor and Russian State Banks Connections
The cryptocurrency A7A5 was developed by Russian company A7, owned by fugitive Moldovan oligarch Ilan Shor. The operator, Tokeon, is controlled by Promsvyazbank in Russia. Through Grinex, billions in Russian funds were transferred internationally, bypassing sanctions.
Shor, according to the Washington Post, is closely linked to the FSB and funds pro-Russian movements in Moldova. His office is also located in Moscow-City, next to major Russian financial institutions.
4. The Story of Garantex and Sergey Mendeleev
Grinex is a reincarnation of the sanctioned crypto exchange Garantex. Founder Sergey Mendeleev has been investigated by Chainalysis, TRM Labs, and Coinpaper.
Garantex, registered in Estonia in 2019, operated mainly from Moscow-City, facing constant raids. Between 2019 and 2022, $96 billion passed through Garantex. Mendeleev’s partners faced mysterious deaths under suspicious circumstances.
5. FSB and Russian Intelligence in the Crypto Business
In the Moscow business club Sostav, organized by Mikhail Zhukhovitsky, Russian intelligence agencies, including FSB and SVR, openly lecture and interact with crypto operators.
Figures such as Alexander Vinnik (BTC-e), Anton Nemkin (Vladex), Roman Seleznev (“Psych”), and Andrey Lugovoy are directly connected to the Kremlin and FSB, using crypto to bypass sanctions and enrich themselves.
6. Dark Events Surrounding Garantex Staff and Partners
Garantex employees faced intimidation: Stanislav Drugalev was coerced into cooperation and later died in Dubai under suspicious circumstances. Alexey Beshchyokov died in an Indian prison after a US arrest.
Mendeleev claims he has no “protection” from authorities, yet the fates of his associates suggest deep ties with Russian security services.
7. Brutal Murder of Marat Zaripov and Money Laundering in Kyrgyzstan
In Kyrgyzstan, between 2024 and 2025, the crypto exchanges Four Dragons, WhiteBIT, and Garantex were used to launder billions of dollars.
Marat Zaripov, arrested over USDT theft, was brutally tortured and killed in SIZO-1 Bishkek. According to Four Dragons, his death was directly linked to exposing the laundering channels through these exchanges.
8. WhiteBIT Controversies and Kyrgyz Police Corruption
Four Dragons claims that criminal cases against WhiteBIT were deliberately halted, with key figures removed from the wanted list in exchange for bribes. Investigators Izat Dogdurbekov and Ruslan Sharshembiev allegedly helped close these cases and personally benefited financially.
This exposes systemic corruption in Kyrgyz law enforcement and state ties to the crypto sector.
9. State-Controlled Crypto in Kyrgyzstan and Sanction Implications
Kyrgyz crypto markets have grown 100-fold since 2022. The Ministry of Economy reports 169 exchanges, 13 crypto platforms, and 11 mining companies. A new law establishing state mining and crypto reserves provides legal grounds for issuing stablecoins like A7A5.
FT reports that approximately $6 billion passed through A7A5 in two months despite sanctions, prompting EU proposals for direct sanctions against Shor’s cryptocurrency.
10. Lavish Gifts and Shor’s Ties to Sadyr Japarov
Moldovan agency IPN reported that Ilan Shor paid for Sadyr Japarov’s luxury aircraft worth $17.9 million through a network of front companies. This indicates a close financial relationship between the Kyrgyz leader and an oligarch involved in international sanction-busting schemes.
