Russian Oligarch Faces Scrutiny

A sanctioned Russian figure, Mikhail Klyukin, faces scrutiny for reportedly sidestepping sanctions through a £15 million share sale in cryptocurrency.

Klyukin, under sanctions for his role in a Russian bank, Sovcombank, turned to Copper Technologies, a crypto-focused company chaired by former UK Chancellor Philip Hammond, to facilitate the transaction.

Concerns arose when Klyukin appeared on the White House's sanctions list, prompting Copper to arrange the sale of his shares to mitigate risks.

Legal experts warn of potential consequences for Copper, as using cryptocurrency for such transactions could breach US sanctions, inviting secondary sanctions and exclusion from the US financial system.

Copper maintains compliance, citing legal advice, while Hammond claims unawareness of the share sale.

Crypto Company's Controversial Role

Copper Technologies, a firm specialising in digital systems for cryptocurrency investment and trading, faces controversy over its involvement in the sale of shares belonging to sanctioned Russian individual Mikhail Klyukin.

The move aimed to remove Klyukin from the shareholder register after he appeared on the White House's sanctions list.

Copper orchestrated the sale, converting the £15 million payment into cryptocurrency to transfer to Klyukin.

The company asserts compliance with sanctions laws and stated:

"We carefully considered the implications, including with the assistance of specialist external sanctions counsel in various jurisdictions, and concluded that the transaction was compliant with all applicable sanctions requirements."

Regulatory Skepticism

Former UK Chancellor Philip Hammond, now Chairman of Copper Technologies, was reportedly unaware of the controversial share sale orchestrated by the company.

Hammond, assuming the role in January 2023, learned of the transaction during a review of major shareholders.

Meanwhile, Copper faces skepticism from UK financial regulators, failing to secure full approval from the Financial Conduct Authority.

The global cryptocurrency market's downturn further impacts the value of Copper's growth shares, adding challenges to the firm's trajectory.