UK sanctions TokenSpot and Xeltox Enterprises over crypto transfers

The United Kingdom has imposed sanctions on several cryptocurrency-related entities, including TokenSpot and Xeltox Enterprises Ltd, for allegedly supporting the Russian financial services sector.

According to the Foreign, Commonwealth and Development Office, Xeltox Enterprises Ltd serves as the parent company for Cryptomus, Heleket, and Certa Payments Ltd. The UK designated these brands as a single sanctioned entity, noting that Heleket appeared to be used to absorb users from Cryptomus following the latter's implementation of mandatory KYC checks. This move aims to prevent operators linked to Russia from shifting users between companies to evade oversight.

TokenSpot, an exchange based in Kyrgyzstan, was also designated. Reports indicate that TokenSpot has been involved in fund transfers exceeding $950 million. The scale of these transfers marks one of the largest crypto-focused enforcement actions disclosed by UK authorities. Xeltox Enterprises has previously faced a CAD 177 million fine from Canada's FINTRAC for breaching money-laundering and terrorist-financing rules, a decision the firm is currently challenging in court.