The U.S. Treasury re-sanctions the Garantex exchange and related entities, accusing the exchange of handling over $100 million in illegal transactions.
The U.S. Treasury is escalating its fight against illegal financial activities in the digital asset space, with its latest target being the cryptocurrency exchange Garantex. Through the Office of Foreign Assets Control (OFAC), the agency has imposed a series of new sanctions, marking the second time Garantex has been blacklisted since 2022.
This round of sanctions not only targets Garantex but also extends to the complex network believed to have been set up to circumvent the law. Specifically, OFAC has added Garantex's 'successor entity' Grinex, three senior leaders, and six related companies in Russia and Kyrgyzstan to the Special Designated Nationals (SDN) list. Since 2019, Garantex is believed to have processed over $100 million in transactions linked to illegal activities, including ransomware attacks.
This action by OFAC is seen as a direct response to Garantex's efforts to evade the initial sanctions imposed in 2022. At that time, the exchange was accused of 'willfully ignoring' anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.
After being sanctioned, Garantex's leaders quickly established Grinex as a means to continue operations and evade oversight. Despite $26 million in digital assets being seized and the website being shut down during the first round of sanctions, the network continues to find ways to operate.
This crackdown does not stop at financial sanctions. The U.S. Department of Justice (DOJ) has also intervened, announcing an indictment against Garantex's leaders. In March, one of the leaders, Aleksej Besciokov, was arrested in India and is facing a series of serious charges.
Meanwhile, founder Aleksandr Mira Serda remains at large, with the U.S. government offering a reward of up to $6 million for any information leading to his capture. The latest sanctions also include the freezing of several Bitcoin, Ether, and Tron wallet addresses associated with the exchange, demonstrating a comprehensive approach to completely dismantle this underground financial network.
