Key Takeaways
- The US Secret Service and the coalition of international law enforcement agencies officially seized and removed the Garantex website.
- The exchange has been linked to Russian banks under EU sanction and other criminal groups.
- Stablecoin issuer Tether froze $28 million USDT on the exchange after the sanction on Garantex by the European Union.
Secret Service Siezes Garantex
On the 6th of February 2025, the US Secret Service and the coalition of international law enforcement agencies officially seized and removed the website of a well-known Russian crypto exchange, Garantex. The seizure was conducted citing ties to sanctioned Russian banks and criminal groups. The website is currently timing out with the “The site can’t be reached” error.
Before the website shut down, they addressed that the agency had taken down their domain by issuing a warrant from the US Attorney’s office for the Eastern District of Virginia. The Secret Service spokesperson, Nate Herring, has also affirmed that the seizure of the Garantex website was part of an ongoing investigation, with further details being released at a later date.
Garantex’s Role In Illicit Activities
Garantex was first sanctioned by the US Office of Foreign Assets Control (OFAC) in April 2022. At that time, they were accused of facilitating over $100 million in transactions associated with illicit actors and darknet markets. This also includes association with ransomware groups like Conti and the now defunct Hydra market.
In 2023, Garqntax played a key role in laundering money for several Russian-speaking ransomware groups, who accumulated over 65% of all crypto proceeds from ransomware, exceeding $500 million. High-profile money launderers like Ekaterina Zhdanova have relied on the exchange to move illicit funds linked to various Russian elites.
Garantex is a major enabler of sanctions evasion and is also linked to a number of high-risk Russian entities that use the exchange to move their illicit money to offshore accounts, bypassing financial restrictions imposed on them.
Tether Blocks Garantex Account
After the sanction on Garantex by the European Union was associated with their links to the Russian government, Stablecoin issuer Tether froze $28 million USDT on the exchange. Furthermore, Tether also blocked a Garantex account holding more than 2.5 billion rubles, which Garantex declared “an act of war against the Russian crypto market”.
Following this event, Garantex conveyed through their Telegram account that there would be a temporary suspension of all services associated with the exchange, including withdrawals. In this message, they also specified that they are doing everything possible and will continue to “fight”, highlighting that “all Tether in Russian wallets is currently under threat”.
Aftermath Of Garantex Siezure
Following the Garantex seizure, the immediate aftermath included restricting users’ access to their funds. This has landed a major blow to cybercriminals looking to launder their money through the exchange and has also resulted in the shedding of a very bright spotlight on other exchanges included in similar illicit financial activities.
Even with Garantex seized and disoperational, it is not possible to put a full stop to these activities as criminals can easily switch to alternative platforms or methods to launder their black money. However, Garantex may become operational again under a different name or through affiliated entities to continue its illicit activities. For further updates regarding the matter, stay tuned.
