Ethical Hacking News
The U.S. Department of the Treasury has renewed sanctions against Russian cryptocurrency exchange platform Garantex, a move that sheds light on the platform's role in facilitating illicit crypto transactions worth over $100 million since 2019.
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has renewed sanctions against Russian cryptocurrency exchange platform Garantex. Garantex is accused of facilitating over $100 million in illicit crypto transactions since 2019, including ransomware laundering and darknet market transactions. Grinex, Garantex's successor, has been instrumental in processing over $100 million in transactions linked to illicit activities. The U.S. Treasury has imposed sanctions on Grinex, as well as three executives of Garantex and six associated companies in Russia and the Kyrgyz Republic. The platform's senior executives have actively worked to enable cybercrime and sanctions evasion. A7A5 token, a ruble-backed stablecoin issued by Old Vector, has been used to transfer over $1 billion per day. Ekaterina Zhdanova, a prominent money launderer, exchanged over $2 million in Bitcoin for Tether (USDT) via Garantex. A $5 million reward is being offered by the U.S. Department of State for information leading to the arrest of Serda, one of Garantex's co-founders.
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has recently renewed sanctions against Russian cryptocurrency exchange platform Garantex, a move that sheds light on the platform's role in facilitating illicit crypto transactions worth over $100 million since 2019. The decision to impose additional sanctions on Grinex, Garantex's successor, as well as three executives of Garantex and six associated companies in Russia and the Kyrgyz Republic, underscores the agency's determination to crack down on the use of cryptocurrency exchanges for nefarious purposes.
The Office of Foreign Assets Control (OFAC) has consistently emphasized its commitment to disrupting the financial networks of cybercriminals and sanctions evaders. The agency views cryptocurrency exchanges as a prime conduit for illicit activities, including ransomware laundering, darknet market transactions, and sanctions evasion. By imposing sanctions on Garantex and Grinex, OFAC is sending a clear message that it will not tolerate the exploitation of cryptocurrency platforms to support these malicious activities.
According to TRM Labs, an analytics firm specializing in cryptocurrency intelligence, Garantex's successor, Grinex, has been instrumental in processing over $100 million in transactions linked to illicit activities. The platform's nearly identical interface and registration in Kyrgyzstan have allowed it to maintain a level of anonymity despite the March 2025 law enforcement actions that led to Garantex's takedown. Telegram channels affiliated with the exchange have since promoted Grinex, further highlighting its role as a hub for illicit crypto transactions.
The U.S. Treasury has revealed that Garantex's senior executives have actively worked to enable cybercrime and sanctions evasion by procuring computer infrastructure, registering trademarks, and engaging in business development efforts to make its activities appear legitimate. This level of collaboration between Garantex's leadership and the platform's partner companies has facilitated the movement of illicit funds outside of Russia, underscoring the need for continued vigilance in disrupting these financial networks.
Furthermore, TRM Labs reported that A7A5 token, a ruble-backed stablecoin issued by Old Vector, a Kyrgyzstani firm linked to A7 LLC, has been used to transfer over $1 billion per day. The aggregate value of A7A5 transfers is pegged at $41.2 billion, with Grinex estimated to have facilitated the transfer of billions of dollars in cryptocurrency transactions within its operational period.
The involvement of prominent money launderers, including Ekaterina Zhdanova, who exchanged over $2 million in Bitcoin for Tether (USDT) via Garantex, highlights the platform's role as a key conduit for cybercrime and sanctions evasion. Sanctioned by the U.S. in November 2023, Zhdanova was previously linked to laundering virtual currency for Russia's elites and cybercriminal crews.
In light of these developments, the U.S. Department of State has announced a $5 million reward for information leading to the arrest of Serda, one of Garantex's co-founders, while offering a $1 million reward for information on other key leaders of Grinex. Sanctions have also been imposed on A7 LLC and Old Vector by the U.K. and European Union, respectively.
The renewal of sanctions against Garantex and Grinex underscores the ongoing efforts to disrupt the financial networks of cybercriminals and sanctions evaders. As the use of cryptocurrency exchanges for illicit activities continues to evolve, it is essential that law enforcement agencies and regulatory bodies maintain their vigilance in identifying and disrupting these networks.
The recent actions taken by OFAC serve as a reminder that the United States will not tolerate the exploitation of cryptocurrency platforms to support cybercrime and sanctions evasion. By imposing additional sanctions on Garantex and Grinex, the agency has demonstrated its commitment to protecting national security and maintaining economic stability.
In conclusion, the renewal of sanctions against Garantex and Grinex highlights the ongoing efforts to disrupt the financial networks of cybercriminals and sanctions evaders. The use of cryptocurrency exchanges for illicit activities continues to pose a significant threat to national security and economic stability, underscoring the need for continued vigilance in identifying and disrupting these networks.
Related Information:
https://www.ethicalhackingnews.com/articles/The-Hidden-Menace-of-Garantex-Unraveling-the-Web-of-Illicit-Crypto-Transactions-ehn.shtml
https://thehackernews.com/2025/08/us-sanctions-garantex-and-grinex-over.html
Published: Fri Aug 15 07:10:15 2025 by llama3.2 3B Q4_K_M
