Stablecoin A7A5 loses Ruble peg after U.S. and the U.K. sanctions

2025/08/23 21:20

Kyrgyz-issued stablecoin A7A5 lost its peg to the Russian ruble after it was targeted with sweeping new sanctions by the U.S. and the U.K.

The team behind the project announced through social media it’s replacing the crypto’s smart contract with a new one to achieve “fair and accurate pricing.”

A7A5 swaps smart contract as stablecoin’s price drops

Ruble-backed A7A5, issued by a Kyrgyzstan-registered company, has briefly lost its peg to Russia’s fiat currency, following the imposing of new sanctions by U.S. and U.K. authorities against entities and persons linked to the stablecoin.

“On the evening of Aug. 21, the rate of the A7A5 stablecoin instantly fell to 99% of its nominal value (1 A7A5 = 1 RUB),” Bits.media noted in a post published the following day.

A partial price recovery was observed later, but the rate remained in the red zone, at around 0.60 rubles per token, the leading Russian crypto news outlet added.

Also on Friday, the @A7A5official Telegram channel announced the termination of the wA7A5 smart contract, explaining its current rate no longer reflects the market value of the digital asset.

The @A7A5official account on X posted the same update, advising users to refrain from transactions with the old contract, to avoid loss of funds, before the new one is launched and listed on Saturday.

The authors of the message promised to exchange holders’ old tokens for new ones, based on the balance snapshot taken at 18:57:59 GMT+3, on Aug. 21, 2025. They also emphasized the new contract will “ensure fair and accurate pricing.”

On the morning of Aug. 23, the stablecoin was trading at around $0.012, according to CoinMarketCap data, or approximately 0.96 rubles at current exchange rates.

A7A5 stablecoin loses Russian rubble peg amid Western sanctions.7-day price chart for A7A5, Source: CoinMarketCap.

Changes come after fresh sanctions from London and Washington

Since its launch in early 2025, the ruble-pegged A7A5 has been the subject of suspicions it’s being used by Russian actors to circumvent Western sanctions imposed over the war in Ukraine.

Created by A7, a Russian company majority-owned by fugitive Moldovan oligarch with Russian passport Ilan Shor, is now issued by the Kyrgyz-registered Old Vector, as a “fully independent” project.

The cryptocurrency has been also linked to the Kyrgyzstan-based crypto exchange Grinex, alleged successor of the Russian coin trading platform Garantex, taken offline in a U.S.-led operation in March.

Soon after Garantex was shut down, Grinex started processing A7A5 withdrawals. According to an article in the Financial Times, the stablecoin was used to move over $9 billion in four months.

On-chain analytics firm Elliptic claims more than $1 billion is being transferred daily through the stablecoin. Blockchain intelligence company TRM Labs concluded in a report:

In mid-August, the U.S. Office of Foreign Assets Control (OFAC) imposed sanctions on multiple Russian companies and individuals linked to the ruble-pegged crypto. Among them were A7, and its subsidiaries, as well as Old Vector.

Russian businessman Sergey Mendeleev, a co-founder of Garantex, and other crypto platforms connected to him were also sanctioned. The Departments of State and the Treasury put $6 million bounties on the heads of Garantex executives.

Later this month, the United Kingdom sanctioned Old Vector, too, in a move to disrupt “dodgy crypto networks” that London believes are being used by Moscow to finance its war effort in Ukraine.

Two of Kyrgyzstan’s traditional financial institutions, Capital Bank and Keremet Bank, were also among the targeted organizations, along with affiliated entities and officials.

This prompted the Central Asian nation’s president, Sadyr Zhaparov, to appeal to U.S. President Donald Trump and U.K. Prime Minister Keir Starmer this week, urging them to avoid “politicizing economy.”

The smartest crypto minds already read our newsletter. Want in? Join them.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
Share Insights

You May Also Like

Uber Races Into AI Data Labeling as Meta’s $14.8B Scale Deal Sparks Mass Defections – Who’s Next?

Uber Races Into AI Data Labeling as Meta’s $14.8B Scale Deal Sparks Mass Defections – Who’s Next?

Uber is moving deeper into the AI services space, expanding its data labeling business just as some AI firms have begun to distance themselves from Scale AI following Meta’s $14.8 billion investment in the company. On June 20, Uber announced a major expansion of its AI data services unit, now branded as Uber AI Solutions. The company said it will offer its internal technology platforms to AI labs and enterprises looking to build and test large-scale models. This includes access to ready-made datasets, clickworker task networks, and tools for training AI agents. The move comes at a time when the AI labeling market is under pressure. Meta’s 49% stake in Scale AI has reportedly unsettled former partners like OpenAI and Google. Uber Eyes Enterprise AI Market With Global Data Workforce and New Tools Megha Yethadka, general manager of Uber AI Solutions, said the expansion builds on the company’s decade-long experience handling massive data operations. “We’re bringing together Uber’s platform, people, and AI systems to help other organizations build smarter AI more quickly,” she told Forbes. Uber AI Solutions first launched in November 2023 under the name Uber Scaled Solutions. It began by offering data annotation tools to train models for clients. The rebrand reflects the company’s broader focus on AI. $UBER is scaling up its AI data services with the global launch of Uber AI Solutions. It’s opening its internal tools and global talent network—used to train self-driving cars and Gen AI agents—to AI labs and enterprises in 30+ countries. pic.twitter.com/syA5ybutvG — Wall St Engine (@wallstengine) June 20, 2025 Now active in more than 30 countries, Uber’s platform connects companies with a global pool of contractors. These clickworkers handle tasks like translation, coding, editing, and dataset labeling. According to Yethadka, there are “tens of thousands” of workers in the network, including subject matter experts across STEM, law, and finance. The top taskers spend around three to four hours daily on the platform, with pay ranging from $20 to $200 per hour, depending on the complexity of the assignment. How @Uber used LangGraph to build AI developer agents that generate thousands of daily code fixes and saved 21,000+ hours — serving an organization of 5,000 developers working with hundreds of millions of lines of code. Watch their full session here: https://t.co/3j6kntbHza pic.twitter.com/QrB7eyNUo6 — LangChain (@LangChainAI) June 10, 2025 “We do see an opportunity to build this into a meaningful business line for Uber,” said Yethadka. The company is also developing a user-facing software interface to simplify project setup. Clients will be able to describe their data needs in plain language, with the system automatically assigning tasks, setting workflows, and overseeing quality control. Among the tools now available are services for creating datasets involving video, audio, images, and text. Uber is also offering companies access to the same back-end infrastructure it uses to manage its own AI training efforts. Clients already working with Uber AI Solutions include autonomous vehicle firm Aurora and Niantic, the maker of Pokémon Go, which recently shifted away from gaming to focus on enterprise AI. The company did not disclose its total clickworker count, but said the workforce has doubled since the start of the year. With Meta’s partnership reshaping Scale’s client dynamics, Uber’s move comes at a moment of opportunity. Whether it becomes the next major destination for AI data services is still unclear. Uber Bets Big on Data Labeling as Meta-Scale Shakeup Sends Industry Scrambling Uber’s entry into the AI data labeling market couldn’t come at a more turbulent time. Meta’s $14.8 billion deal with Scale AI has sent shockwaves through the industry, with Scale CEO Alex Wang now joining Meta to lead its new Superintelligence Lab, directly challenging OpenAI, Google DeepMind, and Anthropic. The move has prompted clients to rethink their partnerships, with some, like OpenAI , already cutting ties with Scale, according to Bloomberg. As a result, the field is wide open. Smaller players like Mercor, Turing, and Invisible Technologies are racing to fill the vacuum, but Uber brings unique advantages such as scale and capital. Unlike VC-dependent startups, Uber already has a massive global contractor network, logistics infrastructure, and experience managing gig work, traits it now hopes to apply to high-skill data annotation. “More companies want neutral, independent vendors,” said Uber’s head of new AI initiatives, Yethadka. That neutrality, paired with Uber’s commitment to data privacy, may give it a shot at winning over companies spooked by Scale’s tighter integration with Meta. Still, competition will come down to talent. “Data labeling is trending toward more complex, skilled tasks,” said Mercor CEO Brendan Foody. Uber’s success will depend on whether it can build and maintain a reliable network of high-skill clickworkers. With Big Tech expected to spend over $300 billion on AI in 2025, Uber’s shift into this space is a strategic move and a sign that the battle for AI dominance is expanding far beyond just algorithms.
Share
CryptoNews2025/06/21 06:26
Share