TOKEN2049 removes A7A5 stablecoin sponsor after controversy

4th September 2025 – Token2049 event organizers erased all traces of the controversial A7A5 stablecoin from their website and schedule after media inquiries. The token’s links to Kremlin interests and sanctioned Russian banks raised alarms about compliance failures at the major crypto event.

A7A5 erased after Reuters inquiry

On October 3, 2025, TOKEN2049 quietly removed the A7A5 stablecoin from its list of platinum sponsors. The takedown came just hours after Reuters questioned the event’s organizers about the sanctioned project.

A7A5 director Oleg Ogienko had been scheduled to speak at the Singapore event. He was present on-site but was removed from the public agenda after the news broke. TOKEN2049 also deleted all mentions of A7A5 from its official website.

Ogienko confirmed to reporters that his team had secured sponsorship through the regular process and had paid for their booth.

Sanctioned token draws global scrutiny

In August 2025, the U.S. and U.K. governments sanctioned A7A5 and related companies. Authorities said the ruble-pegged stablecoin was designed to help Russia sidestep global sanctions following its invasion of Ukraine.

The project was launched in January 2025 by a network connected to Promsvyazbank, a Russian state-owned bank already under Western sanctions. The token’s founder, Ilan Shor, is a Moldovan oligarch and Kremlin ally. His A7 group is reportedly the architect behind the stablecoin system.

Blockchain analytics firm Elliptic reported that A7A5 has facilitated over $70.8 billion in transactions since launch. As of this week, nearly 41.6 billion tokens remain in circulation, with an estimated market value of close to $500 million.

Market-making tactics to boost liquidity

To create demand and liquidity, internal chats from April revealed that A7 wallets sent at least $2 billion in USDT to exchanges. They then used those funds to buy A7A5 tokens. This strategy helped inflate the trading volume and created an impression of deep market activity.

Ironically, while the project sought to bypass Western financial systems, it relied on them to build its early liquidity.

Ogienko defends the project

While speaking with reporters at TOKEN2049, Ogienko defended A7A5. Stated that the token followed regulations in Kyrgyzstan and had no ties to money laundering. He described it as a legal cross-border payments tool for Russian businesses and their international partners.

He emphasized that adoption has grown especially in Asia, Africa, and Latin America. According to him, billions of dollars move through the network from those regions.

Global concerns and weak enforcement

Western governments may have imposed sanctions, but enforcement gaps remain. Neither Singapore nor Hong Kong has blocked A7A5 or its parent entities. Legal experts note that U.S. jurisdiction does not apply in many cases unless American individuals or businesses are involved.

TOKEN2049 organizers did not reply to media requests for comment. However, the quiet removal of A7A5 indicates growing sensitivity among event planners when dealing with sanctioned projects.