European regulator imposes sanctions on Russian cryptocurrency exchange Garantex

The European Union has imposed sanctions against the Russian cryptocurrency exchange Garantex as part of the 16th package of restrictions aimed at the economic isolation of the aggressor state of Russia. This decision was part of international efforts to combat the financing of illegal schemes linked to Russian banks and cybercrime. Earlier, the exchange had already been sanctioned by the United States over suspicions of money laundering and cooperation with criminal organizations.

Garantex has been sanctioned by the US Office of Foreign Assets Control (OFAC) since April 2022. According to the US Treasury Department, illegal transactions worth more than $ 100 million have gone through the platform, much of which is related to darknet markets. In 2023, the exchange was accused of facilitating money laundering by the North Korean hacker group Lazarus, which is known for attacks on crypto services.

In early 2024, the US and UK authorities investigated $ 20 billion worth of transactions conducted through Garantex. This was part of the global monitoring of financial flows that could be used to evade sanctions. Chainalysis analysts reported in July 2024 that more than $ 30 billion was laundered through the exchange in 2022 alone.

Despite previous sanctions, Garantex continued to operate, serving customers in Russia and Iran. In September 2024, experts confirmed that the platform continued to help circumvent international restrictions. In addition, OKX CEO Star Xu said that the company is considering blocking the accounts of users who interacted with Garantex through the Tornado Cash mixer.

In late September, the US authorities expanded the sanctions list to include another crypto company, Cryptex, which cooperated with Garantex and was involved in money laundering schemes. This demonstrates the strengthening of control over illegal crypto-financial transactions and the international community’s desire to reduce the financial capabilities of Russia in the midst of a full-scale military aggression against Ukraine.