Key Takeaways
- OFAC claims Garantex processed over $100 million with connections to illicit activities since 2019.
- Grinex, three Garantex officials and six Russia- and Kyrgyz Republic-based companies have also been sanctioned
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions against the crypto exchange Garantex Europe OU, its ‘successor’ platform Grinex, and three Garantex officials and six Russia- and Kyrgyz Republic-based companies.
“By exposing these malicious actors, Treasury remains committed to and supportive of the digital asset industry’s integrity,” the press release reads.
Garantex, which was previously sanctioned under Executive Order 14024, has now been redesignated. Grinex, formed after enforcement actions against Garantex in March 2025, has been sanctioned under additional cyber-related authorities. Officials stated that Grinex was established to bypass restrictions placed on Garantex.
Part of the sanctions focuses on the A7A5 token, a ruble-linked digital asset issued by Kyrgyzstani company Old Vector. The token was reportedly used to compensate former Garantex users whose funds were frozen, providing an equivalent value in rubles via blockchain transfers. OFAC claims Garantex processed over $100 million with connections to illicit activities since 2019.
The latest move follows earlier enforcement in March 2025, when the U.S. Secret Service, in coordination with international partners, seized Garantex’s domain and froze about $26 million in crypto. Prosecutors later unsealed charges against two executives; one was arrested in India, while another remains wanted. The U.S. State Department has offered monetary rewards for information leading to their arrest.
According to the Treasury, the sanctions aim to restrict the use of virtual assets in facilitating cybercrime, sanctions evasion, and other illicit activities.
In 2022, OFAC sanctioned the exchange for the first time alleging that it flouted Anti-Money Laundering regulations. OFAC probe reportedly found over $8 million connected to ransomware attacks had moved through Hydra, while Garantex facilitated over $100 million in transactions “associated with illicit actors and darknet markets.”
