US Authorities Shut Down Russian Crypto Exchange Garantex After $100 Billion in Transactions
US and European law enforcement agencies have successfully dismantled Garantex, a Moscow-based cryptocurrency exchange that authorities claim processed nearly $100 billion in transactions, with a substantial portion linked to criminal organizations and terrorist groups.
The exchange, which had become a crucial financial channel for Russians following Western sanctions on the country's banking system, was initially sanctioned by the US Treasury Department in 2022. Despite these measures, Garantex continued to operate and expand its business significantly, according to previous reporting by The Wall Street Journal.
In a coordinated effort, the US Justice Department worked with authorities in Germany and Finland to seize Garantex's servers and take control of its websites. Visitors to one of the exchange's main websites are now greeted with a notice indicating it has been seized by the US Secret Service.
The takedown comes at a politically sensitive time, as President Trump recently stated he was "strongly considering" implementing extensive sanctions and tariffs against Russia until a peace agreement is reached in the ongoing Ukraine conflict.
According to cryptocurrency research firm Elliptic, which supported US authorities in their investigation, more than $60 billion of Garantex's transactions occurred after the 2022 sanctions were imposed. The firm reported that most transactions were conducted using the stablecoin tether, which has emerged as a preferred tool for illicit fund transfers. Tether Holdings, the issuer of the cryptocurrency, has previously rejected claims that its product facilitates criminal activity.
Garantex informed its clients on Thursday that Tether Holdings had blocked the exchange's digital wallets, forcing it to suspend services. "Tether entered the war against the Russian crypto market," the exchange claimed in its message.
Law enforcement officials revealed that Garantex's customer base included a wide range of problematic actors, from oligarch representatives and weapons importers to ransomware gangs and drug trafficking networks. The Justice Department specifically acknowledged Tether for its assistance in the operation, suggesting cooperation from the stablecoin issuer despite Garantex's accusations.
This enforcement action represents one of the most significant disruptions of cryptocurrency-based sanctions evasion to date, highlighting the growing focus of Western authorities on digital currency platforms that operate outside regulatory boundaries.