U.S. authorities penalize Russian cryptocurrency companies due to links with cybercrimes and violation of sanctions
U.S. Sanctions Russian Crypto Exchange Garantex for Facilitating Illicit Transactions
In a significant move, the U.S. Department of Treasury's Office of Foreign Assets Control (OFAC) has sanctioned a Russian crypto exchange named Garantex Europe OU. This decision comes amidst escalating geopolitical tensions between Moscow and Washington D.C., with President Trump planning to meet with Russian President Vladimir Putin in Alaska on Friday.
Garantex is currently sanctioned for facilitating over $100 million in illicit transactions linked to ransomware attacks and darknet marketplaces. The exchange was shut down by international law enforcement in March 2025, with its website seized and $26 million in cryptocurrency frozen. Following this, Garantex’s employees created a successor exchange, Grinex, registered in Kyrgyzstan, to continue evading sanctions and laundering money using the ruble-backed stablecoin A7A5, which processes up to $1 billion daily.
Both Garantex and Grinex, along with key executives including co-founder Aleksej Besciokov (who was arrested in India), are designated for their role in sanctions evasion and laundering proceeds from cybercriminal ransomware groups like Conti, Black Basta, and LockBit.
The sanctions against Garantex align with broader efforts by U.S. companies to cut ties with Russian businesses and banks over the Eastern European power's invasion of its neighbor to the west. OFAC's statement indicated that it considers blacklisting platforms that offer services aimed at circumventing sanctions to be crucial to its mission.
Tom Robinson, co-founder of blockchain analytics firm Elliptic, stated that if the U.S. is serious about enforcing sanctions, it must address these crypto workarounds. The sanctioning of Garantex and Grinex is part of a broader U.S. crackdown on cryptocurrency exchanges and networks used for money laundering and criminal activity, aligning with coordinated global law enforcement efforts.
The ongoing military conflict in Ukraine is a significant factor in the escalating geopolitical tensions between Moscow and Washington D.C. OFAC also sanctioned Garantex's successor, Grinex, and blacklisted three Garantex executives and six companies linked to the exchange throughout Russia and the Kyrgyz Republic.
The sanctioning of Garantex contrasts with other federal agencies' moves to wind down enforcement actions against cryptocurrency platforms under U.S President Donald Trump's administration. Earlier this year, securities and commodities regulators dropped a slew of cases against various high-profile crypto exchanges, including Binance.US, Coinbase, and Kraken. However, OFAC's actions demonstrate a continued focus on addressing illicit activities in the digital asset sector.
In April 2022, OFAC had already sanctioned Garantex for its ties to the Russian financial sector, shortly after the Ukraine War began. The U.S.' sweeping tariff threats also contribute to the mounting geopolitical tensions between the two nations. The meeting between Presidents Trump and Putin is intended to discuss peace and international trade conditions.
Key Points Summary:
- Garantex and Grinex, along with key executives, are sanctioned for facilitating illicit transactions and laundering proceeds from cybercriminal ransomware groups.
- The sanctions are part of a broader U.S. crackdown on cryptocurrency exchanges and networks used for money laundering and criminal activity.
- The sanctions align with efforts by U.S. companies to cut ties with Russian businesses and banks over the Eastern European power's invasion of its neighbor to the west.
- The ongoing military conflict in Ukraine is a significant factor in the escalating geopolitical tensions between Moscow and Washington D.C.
- The sanctioning of Garantex contrasts with other federal agencies' moves to wind down enforcement actions against cryptocurrency platforms under U.S President Donald Trump's administration.
[1] U.S. Treasury Sanctions Russian Crypto Exchange Garantex [2] Garantex and Grinex Sanctioned for Money Laundering and Sanctions Evasion [3] OFAC Designates Garantex and Associated Entities for Sanctions Evasion and Money Laundering [4] A7A5 Stablecoin Played Key Role in Garantex and Grinex's Sanctions Evasion [5] Global Law Enforcement Targets Cryptocurrency Exchanges Used for Money Laundering and Criminal Activity
- The crypto exchange Garantex Europe OU has been sanctioned by the U.S. Department of Treasury's Office of Foreign Assets Control (OFAC) for facilitating over $100 million in illicit transactions.
- The sanctioned exchange, Garantex, was involved in ransomware attacks and darknet marketplace transactions, with its employees creating a successor exchange, Grinex, to continue evading sanctions.
- Grinex, registered in Kyrgyzstan, used the ruble-backed stablecoin A7A5 to process up to $1 billion daily in money laundering activities.
- Key executives, including co-founder Aleksej Besciokov, are also designated for their role in sanctions evasion and laundering proceeds from cybercriminal ransomware groups.
- OFAC's statement indicated that it considers blacklisting platforms offering services aimed at circumventing sanctions to be crucial to its mission.
- The sanctions against Garantex and Grinex are part of a broader U.S. crackdown on cryptocurrency exchanges and networks used for money laundering and criminal activity.
- The ongoing military conflict in Ukraine and geopolitical tensions between Moscow and Washington D.C. have played significant roles in the escalation of these sanctions, as well as the broader efforts by U.S. companies to cut ties with Russian businesses and banks.
