The U.S. Secret Service has seized the website of Russian cryptocurrency exchange Garantex over alleged ties to sanctioned banks and criminal groups. The platform, already blacklisted by the U.S. and EU, has been under investigation for years over suspected involvement in illicit transactions.
Seized Garantex Website
The U.S. Secret Service, in a coordinated operation with the FBI, Europol, and other international law enforcement agencies, seized the website of Russian cryptocurrency exchange Garantex on Friday.
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The platform is accused of facilitating illicit financial activities, including transactions linked to sanctioned Russian banks and criminal groups.
Already blacklisted by both the U.S. and the EU, Garantex has been under investigation for years. Its alleged role in facilitating illegal transactions in violation of sanctions has brought it to the forefront of ongoing international efforts to clamp down on cryptocurrency-based money laundering and financial crimes.
Seized Website
A banner displayed on the website confirms the seizure, which is part of an ongoing investigation.ย
The Secret Service confirmed the action was carried out under a seizure warrant obtained by the U.S. Attorneyโs Office for the Eastern District of Virginia, citing U.S. Code 18 U.S.C. ยงยง 981 and 982.
This seizure is part of broader efforts by U.S. and European authorities to cut off Russian financial channels that could potentially circumvent Western sanctions aimed at crippling Russiaโs economy amid its ongoing geopolitical actions, including the war in Ukraine.
Tether Freezes $28 Million in USDT
The crackdown follows a move by stablecoin issuer Tether, which froze $28 million in USDT on Garantex earlier this week.
The exchangeโs response was defiant. Garantex blamed Tether for freezing assets and suspended its services, including cryptocurrency withdrawals, while claiming that all USDT held in Russia had been blocked.ย
A History of Sanctions
Garantex has long been targeted by U.S. and EU authorities due to its alleged links to criminal activity.
In 2022, the U.S. Treasuryโs Office of Foreign Assets Control (OFAC) imposed sanctions on the exchange, citing its role in processing over $100 million in illicit transactions.
These included nearly $6 million linked to Conti, a Russian ransomware group, and $2.6 million tied to Hydra, a major darknet marketplace that was shut down by German authorities in 2022.
Last month, the European Union expanded its sanctions against Garantex, adding the platform to its 16th round of restrictions.
EU officials argue that Garantex played a crucial role in helping Russian entities bypass financial restrictions and maintain access to blocked financial systems, undermining Western efforts to isolate Russia economically.
Why This Matters
The seizure of Garantexโs website and the freezing of $28 million in USDT stablecoins send a clear message to cryptocurrency exchanges worldwide: Failure to comply with international sanctions and financial regulations has consequences.
