Russian exchange Garantex suspends operations after blocking USDT wallets worth 2,5 billion RUB

What’s new? Tether, which issues the largest USDT stablecoin in the crypto market, has blocked the wallets of the Russian crypto exchange Garantex with assets totaling over 2,5 billion Russian rubles (RUB). “Tether has entered the war against the Russian crypto market,” Garantex representatives said, adding that due to the blocking, all services, including withdrawals, are temporarily suspended until the problem is resolved.

Announcement in the Garantex Telegram channel

What else is known?

“Please note that all USDT on Russian wallets is now under threat. As always, we are the first, but not the last,” Garantex concluded, promising to “fight and not give up.”

Anton Gorelkin, Deputy Chairman of the Committee on Information Policy, Information Technology and Communications and Board Chair of the Regional Public Center for Internet Technologies (ROCIT) also commented on the blocking of Garantex USDT wallets:

“This is not the first and, I’m sure, not the last time that Western countries put pressure on various elements of the cryptocurrency infrastructure in pursuit of political goals. The easiest way to do this is with centralized cryptocurrencies, which is why USDT has proven to be a perfect target. To investors who underestimated this risk, my condolences.However, it should be recognized that it is impossible for Russia to completely block this market. Cryptocurrencies will remain one of the most effective tools for circumventing sanctions, although USDT can be safely crossed off this list.”

Garantex was founded in 2019 in Estonia, but its license was revoked by the local regulator in April 2022 after US sanctions were imposed.

The United States linked Garantex to more than $100 million in illegal transfers, including from Russian hackers from the Conti group, which specializes in extortion. Authorities emphasized that the exchange deliberately refused to comply with anti-money laundering (AML) regulations.

Later, in March 2024, the media reported that Garantex had conducted transactions in USDT for $20 billion after the sanctions were imposed, and the US and UK authorities were investigating these transactions. At the time, Tether said it cooperated with law enforcement to ensure compliance.

Tether regularly cooperates with law enforcers around the world, and it has repeatedly frozen USDT wallets linked to illegal activity, including hacking, fraud, and sanctions violations.

Last August, leading crypto exchange OKX began blocking customers for transfers from sanctions-listed crypto services, including Garantex. Users of many P2P exchanges are also at risk of being frozen when attempting to exchange assets linked to a sanctioned exchange.