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The European Union has imposed sanctions on Russian cryptocurrency exchange Garantex as part of the 16th package of restrictions aimed at economically isolating the aggressor state of the Russian Federation. The decision is part of international efforts to combat the financing of illegal schemes linked to Russian banks and cybercrime. The exchange had previously been subject to US sanctions on suspicions of money laundering and cooperation with criminal structures.
Garantex has been under sanctions by the US Office of Foreign Assets Control (OFAC) since April 2022. According to the US Treasury Department, the platform has processed more than $100 million in illicit transactions, much of which is related to darknet markets. In 2023, the exchange was accused of facilitating money laundering by the North Korean hacking group Lazarus, which is known for attacks on crypto services.
In early 2024, US and UK authorities investigated $20 billion in transactions conducted through Garantex. This was part of a global monitoring of financial flows that could be used to evade sanctions. Chainalysis analysts reported in July 2024 that over $30 billion was laundered through the exchange in 2022 alone.
Despite previous sanctions, Garantex continued to operate, serving clients in Russia and Iran. In September 2024, experts confirmed that the platform continued to help circumvent international restrictions. In addition, the CEO of the OKX crypto exchange Star Xu stated that the company is considering blocking the accounts of users who interacted with Garantex through the Tornado Cash mixer.
In late September, the US authorities expanded the sanctions list by adding another crypto company, Cryptex, which cooperated with Garantex and was involved in money laundering schemes. This indicates increased control over illegal crypto-financial transactions and the desire of the international community to reduce the financial capabilities of the Russian Federation in the midst of full-scale military aggression against Ukraine.
The European Union has imposed sanctions on Russian cryptocurrency exchange Garantex as part of the 16th package of restrictions aimed at economically isolating the aggressor state of the Russian Federation. The decision is part of international efforts to combat the financing of illegal schemes linked to Russian banks and cybercrime. The exchange had previously been subject to US sanctions on suspicions of money laundering and cooperation with criminal structures.
Garantex has been under sanctions by the US Office of Foreign Assets Control (OFAC) since April 2022. According to the US Treasury Department, the platform has processed more than $100 million in illicit transactions, much of which is related to darknet markets. In 2023, the exchange was accused of facilitating money laundering by the North Korean hacking group Lazarus, which is known for attacks on crypto services.
In early 2024, US and UK authorities investigated $20 billion in transactions conducted through Garantex. This was part of a global monitoring of financial flows that could be used to evade sanctions. Chainalysis analysts reported in July 2024 that over $30 billion was laundered through the exchange in 2022 alone.
Despite previous sanctions, Garantex continued to operate, serving clients in Russia and Iran. In September 2024, experts confirmed that the platform continued to help circumvent international restrictions. In addition, the CEO of the OKX crypto exchange Star Xu stated that the company is considering blocking the accounts of users who interacted with Garantex through the Tornado Cash mixer.
In late September, the US authorities expanded the sanctions list by adding another crypto company, Cryptex, which cooperated with Garantex and was involved in money laundering schemes. This indicates increased control over illegal crypto-financial transactions and the desire of the international community to reduce the financial capabilities of the Russian Federation in the midst of full-scale military aggression against Ukraine.
