When governments try to cut off access to financial systems, people turn to sanctions evasion, the act of circumventing legally imposed financial restrictions using alternative systems. Also known as financial circumvention, it’s not just about hiding money—it’s about staying connected when the official channels are locked. Cryptocurrencies make this possible because they don’t need banks, don’t require ID in many cases, and move across borders in seconds. This isn’t theoretical. In Iran, miners run Bitcoin rigs on government-subsidized electricity while millions face blackouts. In Russia, exchanges like Garantex vanished overnight, but their users didn’t disappear—they just moved to platforms that don’t ask questions.
And it’s not just countries. asset forfeiture, when governments seize crypto holdings they believe were used in illegal activity. Also known as crypto confiscation, it’s now a standard tool for the U.S. Treasury and Europol. The U.S. has seized billions in crypto tied to ransomware, darknet markets, and sanctioned entities. But here’s the twist: the same blockchain transparency that helps authorities track funds also lets bad actors hide in plain sight—through mixers, privacy coins, and decentralized exchanges that don’t know who you are. Meanwhile, crypto mining Iran, a case where national energy policy unintentionally fuels a sanctions-busting economy shows how local decisions can have global consequences. Iran’s miners aren’t just running hardware—they’re generating Bitcoin that bypasses U.S. sanctions and ends up in international markets.
It’s not just about breaking rules. It’s about survival. In Bangladesh, a complete crypto ban hasn’t stopped 3.1 million people from using stablecoins to send remittances. In Venezuela, people trade Bitcoin to buy food. And in places where banks refuse service, crypto becomes the only option. The real story isn’t whether crypto enables sanctions evasion—it’s that sanctions evasion is forcing crypto to evolve faster than any regulator can keep up. What you’ll find below are real cases, broken platforms, hidden networks, and the quiet ways people keep moving value when the system says no.
Russia legalized crypto mining to bypass Western sanctions, using stablecoins like A7A5 to move billions in trade. But blockchain transparency and global sanctions are making it harder to hide.