Treasury Department Issues $7.1 Million Penalty to Gracetown Inc. for Sanctions Violations

WASHINGTON, D.C. — December 4, 2025

According to an official announcement from the U.S. DEPARTMENT OF THE TREASURY, the Office of Foreign Assets Control (OFAC) has imposed a $7,139,305 civil penalty on Gracetown Inc., a New York–based real-estate company, for violations of U.S. sanctions related to Russian oligarch Oleg Deripaska. Treasury states that the penalty reflects the company’s acceptance and processing of prohibited payments on behalf of Deripaska-linked entities despite receiving prior notice of the sanctions restrictions.

Treasury reports that between April 2018 and May 2020, Gracetown accepted 24 payments totaling $31,250 connected to an entity controlled by Deripaska. These transactions occurred after Deripaska’s designation under U.S. sanctions, which legally blocks all property and interests under U.S. jurisdiction associated with sanctioned individuals. Treasury also determined that Gracetown failed to report blocked assets in its possession or control for more than 45 months, in violation of federal reporting obligations.

In an official statement included in the release, Under Secretary for Terrorism and Financial Intelligence John K. Hurley emphasized Treasury’s commitment to enforcing sanctions compliance, stating that the department will act firmly against any company that disregards blocking requirements or engages in business dealings benefiting sanctioned foreign actors.

Treasury noted that the penalty approaches the statutory maximum for the violations cited. The enforcement action serves as a reminder to U.S. businesses that transactions involving blocked persons must cease immediately upon designation, and that all blocked assets under their control must be reported promptly to federal authorities.

As of the information contained in the Treasury release, no additional enforcement steps or related legal actions have been announced.

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Sources

U.S. DEPARTMENT OF THE TREASURY — Official Press Release: Civil penalty issued to Gracetown Inc. for sanctions violations.