In a significant move against illicit cryptocurrency activities, the U.S. Secret Service, in collaboration with international law enforcement agencies, has seized the website of Russian cryptocurrency exchange Garantex. This action is part of a broader effort to disrupt platforms facilitating cybercrime and sanctions evasion.
Background on Garantex
Established in 2019 by Stanislav Drugalev and Sergey Mendeleev, Garantex quickly became a prominent player in the Russian cryptocurrency market, specializing in converting rubles into various digital assets. Originally registered in Estonia as Garantex Europe, the exchange later shifted operations primarily to Russia after Estonia revoked its license in 2022 due to supervision issues.
Sanctions and Allegations
Garantex has faced increasing scrutiny from international authorities. In April 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the exchange, alleging its involvement in processing over $100 million in transactions linked to illicit activities, including ransomware groups and darknet marketplaces like Hydra.More recently, on February 24, 2025, the European Union included Garantex in its 16th sanctions package against Russia, accusing the exchange of being closely associated with EU-sanctioned Russian banks and facilitating the circumvention of EU sanctions.
Website Seizure and Operational Disruptions
On March 6, 2025, the U.S. Secret Service, alongside agencies like the Department of Justice’s Criminal Division, the FBI, and Europol, seized the domain of Garantex, effectively disrupting its online operations. Prior to this, Garantex had announced a temporary suspension of all services, including withdrawals, after Tether froze digital wallets on its platform holding more than 2.5 billion rubles (approximately $28 million).
Implications and Industry Reactions
The takedown of Garantex represents a significant blow to the Russian cybercriminal ecosystem, which has relied on such platforms for laundering illicit proceeds. This action underscores the commitment of international law enforcement to target and dismantle infrastructures supporting cybercrime and sanctions evasion. The seizure also highlights the critical role of stablecoin issuers like Tether in monitoring and acting upon suspicious activities within their networks.
As the situation develops, further announcements from law enforcement and regulatory bodies are anticipated, signaling continued efforts to secure the cryptocurrency landscape from misuse.