The U.S. Secret Service, in coordination with international law enforcement agencies, has seized Russian cryptocurrency exchange Garantex, citing its alleged connections to sanctioned Russian banks, darknet markets, and ransomware groups. The move follows years of scrutiny by U.S. and European authorities, who have accused the Moscow-based platform of facilitating illicit financial transactions.
The seizure notice, now displayed on Garantex’s website, states that the operation was carried out under a warrant issued by the U.S. Attorney’s Office for the Eastern District of Virginia. A spokesperson for the Secret Service, Nate Herring, confirmed the seizure, calling it part of an “ongoing investigation.” He declined to provide additional details but assured that further updates would be released when available.
The action comes as part of broader efforts by Western authorities to curb Russia’s use of cryptocurrency exchanges to bypass sanctions. Just last week, the European Union imposed new sanctions on Garantex, citing its links to Russian banks already targeted by EU measures following Moscow’s invasion of Ukraine.
Tether Freezes $28 Million on Garantex
Shortly before the exchange’s seizure, stablecoin issuer Tether froze $28 million worth of USDT held on Garantex. The exchange responded on its Telegram channel, claiming that Tether had “entered the war against the Russian crypto market” and blocked its wallets containing over 2.5 billion rubles. The platform also announced the temporary suspension of all services, including cryptocurrency withdrawals.
“We are fighting and will not give up,” Garantex stated, without acknowledging the law enforcement seizure. The company framed Tether’s actions as an attack on Russian crypto users, warning that all USDT in Russian wallets was now “under threat.”
Tether has not publicly commented on the decision to freeze the funds. However, the move aligns with previous efforts by U.S. authorities to prevent cryptocurrency from being used to evade economic restrictions.
Links to Darknet Markets and Ransomware Groups
Garantex has been under U.S. government sanctions since 2022, when the Treasury Department’s Office of Foreign Assets Control (OFAC) accused the exchange of processing over $100 million in illicit transactions. According to OFAC, the exchange facilitated nearly $6 million in transfers for the Russian ransomware gang Conti and approximately $2.6 million in transactions linked to Hydra, a now-defunct darknet marketplace.
Western law enforcement agencies have long regarded the exchange as a key financial conduit for cybercriminals. U.S. and European investigators allege that cyber gangs used Garantex to launder funds obtained from ransomware attacks and illicit online marketplaces. The platform’s operations allowed users to deposit rubles at physical locations in Moscow and St. Petersburg in exchange for cryptocurrency, making it an attractive option for those seeking to move funds discreetly.
The takedown of Garantex is the latest in a series of actions against Russian-linked cryptocurrency platforms accused of enabling illicit finance. The seizure was conducted in coordination with multiple law enforcement agencies, including the U.S. Department of Justice, the Federal Bureau of Investigation, Europol, the Dutch National Police, the German Federal Criminal Police Office (BKA), the Frankfurt General Prosecutor’s Office, the Finnish National Bureau of Investigation, and the Estonian National Criminal Police.
TechCrunch, which first reported the seizure, reached out to these agencies for comment. The FBI responded, declining to discuss details of the operation, while other organizations did not immediately reply.
According to domain records analyzed by TechCrunch, Garantex’s web domain has now been redirected to servers controlled by the Secret Service. The same servers have previously hosted similar seizure notices for other law enforcement takedowns.
Despite this crackdown, Garantex has remained defiant. In its last public statement before the takedown, the company assured users that it was working to resolve the situation and restore services. However, with its domain now under government control and wallets frozen, the exchange’s prospects remain uncertain.
