U.S. Targets Russian Crypto Exchanges with Sanctions

In a significant move against cryptocurrency platforms allegedly facilitating illicit activities, the Office of Foreign Assets Control (OFAC) under the U.S. Department of the Treasury has reinforced sanctions on Russian crypto exchange Garantex and its successor Grinex. The decision stems from accusations involving money laundering and aiding in circumventing sanctions imposed on Russia.

Background: A History of Sanctions

Back in April 2022, OFAC first listed Garantex due to its alleged role in laundering over $100 million linked to illegal activities. By February 2025, similar restrictions were imposed by the European Union, causing the platform to halt operations following Tether’s freeze on wallets holding $28 million in USDT.
Shortly after these developments, Grinex emerged in Russia as a successor to Garantex. Insights from Global Ledger have corroborated that Grinex maintains close ties with its sanctioned predecessor.

Details from the U.S. Treasury Release

According to recent communications from the U.S. Treasury, Grinex is closely intertwined with Garantex, prompting further sanctions against three key executives and six associated companies operating in Russia and Kyrgyzstan.
Following wallet freezes at Garantex, client funds reportedly transitioned to accounts within Grinex. Promotional materials even suggest that Grinex was established as a direct response to these sanctions.

The Role of A7A5 Stablecoin

The investigation revealed that transactions involving clients’ losses at Garantex were facilitated using A7A5—a ruble-backed stablecoin issued by Kyrgyz firm Old Vector for A7 Limited Liability Society. This entity is tied to sanctioned oligarch Ilan Shor and Russian bank Promsvyazbank.
Despite concerns over extensive wash-trading activity within A7A5’s liquidity pool, Global Ledger suggests an optimistic long-term outlook for this project due to consistent growth patterns.

Comprehensive Sanction List

The expanded sanction list now includes:
– **Garantex**
– **Grinex**
– **Old Vector**
– **A7**, **A71**, and **A7 Agent**
– Co-founder Sergei Mendeleev
– Co-owner Alexander Mir Serda
– Regional Director Pavel Karavatsky
– Payment platforms InDeFi Bank and Exved
As part of these measures, all assets exceeding 50% ownership by these entities are frozen, potentially extending sanctions against any businesses engaging with them financially or otherwise.
Furthermore, U.S. authorities are offering a reward worth up to $6 million for actionable intelligence leading to arrests or convictions associated with Garantex’s leadership—especially concerning Alexander Mir Serda.
Ultimately, these actions represent another chapter in ongoing efforts by regulatory bodies worldwide aiming at clamping down on financial crimes facilitated through digital currencies while maintaining robust oversight across international borders within this rapidly evolving sector.