US Treasury Sanctions Crypto Exchange Garantex and Successor Grinex for Illicit Activities
The United States Department of the Treasury announced on Wednesday, June 14th, new sanctions targeting a cryptocurrency exchange accused of facilitating illicit transactions involving ransomware groups and money laundering. The measures target the Russian company Garantex Europe OU, as well as its successor, Grinex, along with executives and partner companies associated with the criminal activities.
According to the Office of Foreign Assets Control (OFAC), more than $100 million in transactions linked to illegal activities have passed through Garantex since its inception in 2019.
These funds allegedly originated from operations involving ransomware such as Conti, LockBit, and Ryuk, as well as transactions with darknet markets.
In February 2022, the exchange lost its license in Estonia due to serious deficiencies in controls against money laundering and terrorist financing.
This new round of sanctions comes in the same month that the U.S. reinforced its policy of combating the exploitation of cryptocurrencies by malicious actors. “Exploiting exchanges to launder money and facilitate ransomware threatens our national security and tarnishes the reputation of legitimate virtual asset services,” stated John K. Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence.
Grinex: A Sanctioned Successor?
Following coordinated operations by the U.S. Secret Service and authorities in Germany and Finland in March 2025, which resulted in the seizure of $26 million in cryptocurrencies and the domain of Garantex, the company allegedly created Grinex as its successor, according to the U.S. Treasury.
The investigation suggests that Garantex executives transferred user accounts and funds directly to the new platform, in a clear attempt to circumvent international sanctions.
Grinex reportedly operated using the A7A5 token, a ruble-backed stablecoin issued by a company in Kyrgyzstan, to compensate users affected by the actions against Garantex.
The token was also allegedly used by Russian entities involved in sanctions evasion, such as the company A7 and its subsidiaries, all linked to Moldovan oligarch Ilan Shor and the Russian bank Promsvyazbank, both of which are also sanctioned.
Restrictions on Operating with Sanctioned Exchanges and Companies
In addition to the exchanges, OFAC sanctioned three Garantex executives: Sergey Mendeleev, Aleksandr Mira Serda, and Pavel Karavatsky, for their role in continuing operations after the law enforcement actions.
Two companies linked to the group were also targeted: InDeFi Bank and the payment platform Exved, both accused of facilitating international cryptocurrency transactions to evade sanctions.
With their inclusion on the Specially Designated Nationals (SDN) List, all assets of these entities in the U.S. are blocked.
U.S. companies and citizens are prohibited from conducting any transactions with the sanctioned entities, under the risk of also being penalized.
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