VC Firm Hit With $216M Fine for Sanctions Violations: A Debate on Punishment
The U.S. Treasury Department imposed a $216 million penalty on GVA Capital, a Silicon Valley venture capital firm, for violating U.S. sanctions. The firm, labeled by OFAC as an “egregious” violator, knowingly facilitated investments for sanctioned Russian billionaire Suleiman Kerimov, who has alleged ties to Vladimir Putin. Despite legal warnings, GVA Capital coordinated transactions with Kerimov’s proxy related to an investment in Luminar, a U.S.-based technology company. This action underscores the importance of compliance with sanctions to prevent Russian nationals’ access to the U.S. financial system.
John Q. Hosedrinker