Garantex Cryptocurrency Exchange Shut Down by U.S. and European Authorities

Garantex Cryptocurrency Exchange Shut Down

U.S. and European authorities have jointly shut down Garantex, a Moscow-based cryptocurrency exchange, for allegedly processing nearly $100 billion in transactions, a significant portion of which is tied to criminal and terrorist organizations. The exchange served as a critical conduit for Russians to move funds in and out of the country, bypassing Western sanctions aimed at isolating Russia’s financial system.

Operations and Clientele

Despite being sanctioned by the U.S. Treasury Department in 2022, Garantex continued to thrive, catering to a diverse clientele, including oligarch intermediaries, weapons importers, ransomware groups, and drug trafficking rings. Its ability to operate under the radar made it a hub for illicit financial activities.

Law Enforcement Actions

The U.S. Justice Department, in collaboration with German and Finnish authorities, has disrupted and seized Garantex’s online infrastructure. On March 6, U.S. law enforcement, led by the Secret Service, executed a court-authorized seizure of three domains: Garantex.org, Garantex.io, and Garantex.academy. Visitors to these sites now see a law enforcement seizure notice. Additionally, German and Finnish authorities seized servers hosting Garantex’s operations, while U.S. officials obtained server backups, including customer and accounting data.

Financial Impact

U.S. authorities have frozen over $26 million in funds linked to Garantex’s alleged money laundering activities. This coordinated effort aims to dismantle the exchange’s ability to facilitate illegal transactions and violate sanctions. The shutdown marks a significant blow to cryptocurrency platforms exploited for illicit activities.