U.S. prosecutors may confiscate $5.4 million belonging to sanctioned Russian businessman Konstantin Malofeyev, a judge ruled on Thursday, paving the way for the funds to potentially be used to help rebuild war-ravaged Ukraine.
The ruling by U.S. District Judge Paul Gardephe in Manhattan federal court marked the first forfeiture order for a Russian oligarch's assets since the Department of Justice in 2022 launched a task force aimed at squeezing the finances of Russian President Vladimir Putin's allies in response to the Ukraine invasion.
U.S. President Joe Biden in late 2022 signed a law allowing the DOJ to transfer some forfeited assets to the State Department to aid Ukraine. U.S. law limits how the government may use forfeited assets.
