Dapper Labs freezes funds in wallets with Russian ties following EU sanctions, users say

NFT company Dapper Labs has issued warnings to users who have “connections” to Russia that funds held in their account-based crypto wallets have been frozen as part of a set of fresh EU sanctions against Russia. 

Dapper has been forced to prohibit clients with Russian ties from accessing what funds they have held in their wallet “irrespective of the amount,” according to an email posted to Twitter and separately reviewed by The Block. 

The EU banned crypto payments from Russian accounts as part of a broader sanctions package this week, as previously reported. Dapper Labs is headquartered in Vancouver, Canada.  

Twitter account @Crypto_Braniac, which says it is based in Moscow, posted a copy of the Dapper letter to Twitter Friday afternoon, tagging the NFT company. 

The Block obtained a copy of the letter from a client who is not Russian but previously resided there. 

Dapper did not immediately respond to a request for comment.  

The correspondence, which apologizes for “any inconvenience,” states that clients will be able to view their NFTs but will not be able to sell or transfer them to other wallets. The letter again cites the EU’s recent financial sanctions against Russia for its invasion of Ukraine in February. 

The sanctions announced on Oct. 6, which toughened restrictions on crypto payments from Russian accounts, count as the eighth round of EU sanctions against Russia. This round also eliminated the previously established cap on wallets of €10,000 ($9,741), implemented in April.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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