THE US could target Russian cryptocurrency assets to pressure Vladimir Putin's troops to withdraw from Ukraine, a financial expert reveals.

Reports say that Washington could target Moscow's crypto market as officials consider further punitive measures following the invasion.

Russian accounts that have been shut out of the world’s financial system seem to be moving their funds into crypto or overseas.

Daniel Strachman, who has more than 20 years of experience on Wall Street, told The Sun: “It wouldn’t surprise me if Washington elites targeted crypto assets that they feel have an influence on Putin and get him to stop attacking Ukraine.”

He warned that crypto could be used to evade punitive measures, adding “it’s simple to move money around when masked with a virtual private network".

Russia’s crypto market hasn’t yet been targeted as the White House explores new strategies.

Daleep Singh, the Deputy National Security Adviser for International Economics, said any measures need to be “sustainable” and “work over time”, rather than only on their first day.

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Strachman said that the world is seeing a flight toward cryptocurrencies.

He said: “Because of the political situation, people are going to a currency that has volatility and stability.

“You can carry crystal cryptocurrency assets on your phone without having to worry about governments seizing assets or banks saying that they can’t release your money.”

The rouble has plunged by around 30 percent against the dollar and the Moscow Exchange was suspended for the third day in a row.

Crypto activity has increased in Russia – just months after the country’s national bank warned mining posed “significant risks for financial stability”.

Crypto-research group Chain Analysis revealed that trading between the rouble and assets such as bitcoin reached $60million a day on Monday, according to the Financial Times.

More than $30million in cryptocurrency has been donated to Ukraine’s government and non-governmental organizations since Moscow launched its invasion, crypto tracking firm Elliptic revealed.

Chief scientist Tom Robinson said most of the donations have been in either bitcoin or ether.

WILD SWINGS

Investing in cryptocurrency is very high risk as it’s incredibly volatile, meaning their values often make large swings with no notice.

The global crypto market shed more than $1trillion since November following a series of devastating crashes.

Bitcoin dropped to its lowest level in six months in January this year, Bloomberg revealed.

Experts claimed the crash was the result of a crackdown on cryptos from Beijing and Moscow, as well as the US Federal Reserve wanting to raise interest rates.

Bitcoin has since rebounded to more than $44,000 – but the digital currency remains way down on November’s peak.

MASSIVE VOLATILITY

Strachman says massive volatility isn’t new as cryptocurrency is a 24/7 365-days-a-year market.

He thinks there will be more swings as the market becomes more sophisticated as actors such as financial institutions get involved.

Last week, Biden hit Russia with a wave of sanctions as he branded the invasion into Ukraine a “premeditated attack”.

The US also cut off Russia’s central bank and disconnected some from the international banking system SWIFT.

Countries need the system in order to receive payments from the global community as it is connected to over 11,000 financial institutions around the world.

Treasury Secretary Janet Yellen told NBC News that “unprecedented action” was taken to “significantly impair their ability to use the Russian economy and financial system to further their malign activity."

During his State of the Union address, Biden warned Putin that he “has no idea what’s coming”.

Biden branded Russian oligarchs “corrupt leaders who have bilked billions of dollars off this violent regime” as he revealed the Justice Department is launching an investigative task force.

He vowed: “We are coming for your ill-begotten gains.”

And, the commander-in-chief declared that he and both Democratic and Republican lawmakers are joined “with an unwavering resolve that freedom will always triumph over tyranny”.

Western officials fear Putin will turn to total war as his battle for Kyiv seems to have stalled.

Daniel Strachman is a Managing Partner at A&C Advisors LLC.

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