The US Treasury's Office of Foreign Assets Control (OFAC) has reclassified cryptocurrency exchange Garantex Europe as a sanctioned entity. In a recent announcement, OFAC also sanctioned its successor, Grinex, along with three Garantex executives and six companies based in Russia and Kyrgyzstan for allegedly facilitating illegal transactions. The agency claims Garantex processed over $100 million linked to illicit activities since 2019. John Hurley, the under secretary of the Treasury for terrorism and financial intelligence, emphasized that the US will not tolerate the misuse of digital assets for cybercrime and sanctions evasion, which jeopardizes national security and damages the reputation of legitimate service providers. Garantex was initially sanctioned in 2022 for ignoring Anti-Money Laundering regulations. The agency noted that Garantex executives created Grinex to evade sanctions, which included the seizure of $26 million in cryptocurrency. Recent indictments against Garantex executives have led to arrests, with authorities offering rewards for information on those still at large. Read more AI-generated news on: https://app.chaingpt.org/news