Russian crypto exchange Garantex is facing operational restrictions, with approximately ₮28 million in users’ accounts affected after the latest EU sanctions package announced on February 26, 2025.
The EU has been sanctioning Russia throughout its ongoing military conflict with Ukraine. The latest measures focus primarily on individuals and organizations with close ties to Russian financial institutions. Garantex was included in the sanctions due to its association with previously sanctioned Russian banks, such as Sberbank, Alfa-Bank, and T-Bank.
Three-Year-Long Sanctions
Garantex has been under scrutiny by European and US regulators since 2022 due to concerns regarding its role in cryptocurrency transactions. The exchange was accused of “laundering 100 million BTCUSD for cyber terrorists and dark web operations”.
In 2022, the US Treasury Department sanctioned the world’s largest Russian-based darknet marketplace, Hydra, together with Garantex. That enforcement action followed coordinated international efforts, including operations by US agencies and the German Federal Criminal Police, who shut down Hydra’s servers in Germany and then seized $25 million in BTC. Regulators cited concerns that Garantex had not fully adhered to AML and CFT requirements.
The 16th Sanctions Package
In March 2024, the Estonian newspaper Eesti Ekspress and the International Consortium of Investigative Journalists (ICIJ) published a report on Garantex, highlighting its financial ties to state-linked entities and corporate structures. The investigation also raised questions about certain transactions involving the exchange.
Reports indicated that Garantex facilitated large-scale cryptocurrency transfers to various recipients. Inquiries into its operations also brought attention to broader regulatory and compliance challenges within the cryptocurrency industry. Garantex has not publicly addressed these findings.
At the beginning of March 2025, multiple law enforcement agencies—including the US Department of Justice, the FBI, Europol, and national police agencies from the Netherlands, Germany, Finland, and Estonia—took coordinated steps to restrict the platform’s domain access. Meanwhile, BTCUSD price remained volatile in response to broader market reactions to these regulatory developments.
Soon after, the exchange officials issued a statement through its Telegram channel, informing users of temporary service suspensions, including cryptocurrency withdrawals. The statement attributed these disruptions to external regulatory actions and assured users that efforts were being made to resolve the situation.
Additionally, Garantex claimed that Tether had frozen assets associated with the exchange, amounting to over 2.5 billion rubles. The company expressed its determination to continue operations despite current challenges.
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