International Law Enforcement Operation Seizes Russian Crypto Exchange Garantex
In a significant development, international law enforcement agencies have jointly seized the domain of the Russian crypto exchange Garantex. The operation was led by the U.S. Secret Service and involved law enforcement from across the globe.
GaranDEX has been an active player in the Russian cryptocurrency market since 2019. The platform allowed users to buy and sell virtual currencies using fiat currencies. Most of its operations were carried out in Moscow, with other sanctioned virtual currency exchanges also operating in St. Petersburg, Russia.
According to a recent analysis of transactions conducted through Garantex, over $100 million in transactions were associated with illicit activities, including darknet markets. Specifically, nearly $6 million was linked to the RaaS gang Conti and approximately $2.6 million from Hydra Market.
GaranDEX was the third virtual currency exchange to be blocklisted by the U.S. after SUEX and CHATEX. In April 2022, the US Treasury Department sanctioned Garantex due to its alleged ties to Russian banks.
The operation involved law enforcement from across the globe, including the U.S. DOJ, FBI, Europol, Germany, Netherlands, Finland, and Estonia. The U.S. Secret Service seized the domain of the platform pursuant to a seizure warrant obtained by the United States Attorney’s Office for the Eastern District of Virginia under the authority of 18 U.S.C. §§ 981 and 982.
Following the seizure, Garantex issued a statement via Telegram, expressing their intention to "fight" and stating that they would not give up. The message also warned users that all USDT held in Russian wallets was now at risk due to Tether's recent blockade of their wallets containing over 2.5 billion rubles.
The European Union had previously announced sanctions on Garantex for its alleged ties to sanctioned Russian banks (Sberbank, T-Bank, and Alfa-Bank). This led to Tether blocking its wallets, prompting Garantex to temporarily suspend all services, including cryptocurrency withdrawals.