Familiar with crises, they see bitcoin and other cryptocurrencies as an escape from the hegemony of the dollar, and a way to diversify their holdings.

With the European Union and the United States delivering the harshest ever sanctions on Russia following the invasion of Ukraine, ultra-wealthy Russians are turning to new tech to preserve their financial assets. Cryptocurrencies, such as bitcoin (circa $32,000) and ethereum (circa $2,470) can be seen, rightly or wrongly, as life savers during financial and geopolitical crises that threaten private assets.

For those close to the Russian power personally targeted by Western sanctions, holding crypto allows them to escape seizures of their assets abroad. And holders have taken care to cover their tracks, as bitcoin is traceable and transparent. Concerned about discretion, Russian investors may prefer cryptos such as monero ($154) that offer anonymity to their users.

Bitcoin boom in Moscow

The U.S. authorities recently demonstrated during the arrest of the couple suspected of laundering the Bitfinex hack that they were gaining momentum in tracking the flow of these new assets. The U.S. Treasury noted in a statement Tuesday that oligarchs under sanctions have used family members to transfer their assets and hide their vast wealth.