A7A5 Stablecoin Loses Ruble Peg After U.S. U.K. Sanctions

Kyrgyzstan-issued stablecoin A7A5, previously pegged to the Russian ruble, has lost its 1:1 value alignment following sanctions imposed by the U.S. and U.K. authorities in late August 2025. The de-pegging was triggered by the targeting of A7A5-related entities and individuals involved in Russian financial networks, leading to a sharp decline in the stablecoin’s value. The project team announced the replacement of A7A5’s smart contract to “ensure fair and accurate pricing,” advising users to avoid transactions with the old contract to prevent financial loss [1].

The A7A5 stablecoin’s value dropped to nearly 99% of its nominal value on August 21, according to Bits.media. By the next day, the price had partially recovered but remained significantly below its ruble peg, trading at approximately 0.60 rubles per token. The @A7A5official Telegram channel confirmed the discontinuation of the wA7A5 smart contract and outlined a plan to issue a new contract, with a balance snapshot taken on August 21 to facilitate the token swap. Users were instructed to refrain from transacting with the old contract until the new version was launched [2].

On August 23, A7A5 was trading at around $0.012, or approximately 0.96 rubles at current exchange rates, according to CoinMarketCap data. The de-pegging has drawn scrutiny over the stability of ruble-pegged stablecoins, particularly those issued in jurisdictions facing geopolitical tensions. The stablecoin was created by A7, a Russian company previously linked to fugitive Moldovan oligarch Ilan Shor, and later registered in Kyrgyzstan under the name Old Vector. It has been associated with the Kyrgyz-based exchange Grinex, which succeeded the now-shutdown Russian platform Garantex [1].

The U.S. Office of Foreign Assets Control (OFAC) and the U.K. government imposed sanctions on Old Vector, A7, and related individuals in mid-August 2025, citing their role in facilitating Russian efforts to bypass Western economic restrictions. Elliptic and TRM Labs have previously reported large-scale A7A5 transactions, with the former estimating over $1 billion in daily transfers and the latter noting Kyrgyz exchanges' repeated involvement in transactions tied to sanctioned entities [1].

The de-pegging of A7A5 highlights the increasing regulatory pressure on cryptocurrency networks that enable financial circumvention of sanctions. Analysts note that the incident underscores the risks associated with stablecoins issued in politically unstable or sanctioned jurisdictions. As the U.S. and U.K. continue to expand their sanction regimes, further instability in the stablecoin market may follow [1].

Source:

[1] A7A5 stablecoin loses Russian rubble peg amid Western ... (https://www.cryptopolitan.com/a7a5-loses-russian-rubble-peg-sanctions/)

[2] A7A5 Live Price Chart, Market Cap & News Today (https://www.coingecko.com/en/coins/a7a5)