US Treasury Punishes Russian Crypto Firms Over Cybercrime Ties, Sanctions Evasion

By Liz Napolitano

The U.S. Department of Treasury's Office of Foreign Asset Control sanctioned a Russian crypto exchange on Thursday, according to its statement, a sign some federal authorities are continuing to scrutinize digital asset firms, despite U.S. President Donald Trump's directives to ease up on the industry.

The exchange, Garantex Europe OU, “directly facilitated ransomware actors and other cybercriminals,” processing more than $100 million in transactions tied to illegal activities since 2019, OFAC said Thursday in the statement. The agency added that it is also sanctioning the trading platform's successor, Grinex, in addition to blacklisting three Garantex executives and six companies linked to the exchange throughout Russia and the Kyrgyz Republic.

“Exploiting cryptocurrency exchanges to launder money and facilitate ransomware attacks not only threatens our national security, but also tarnishes the reputations of legitimate virtual asset service providers,” Under Secretary of the Treasury for Terrorism and Financial Intelligence John K. Hurley said in the statement.

The foreign assets watchdog's bid to curb crypto-related crime contrasts with other federal agencies’ moves to wind down enforcement actions against cryptocurrency platforms under U.S President Donald Trump's pro-Web3 administration.

Garantex's blacklisting also comes as geopolitical tensions between Moscow and Washington D.C. mount over the U.S.’ sweeping tariff threats and the ongoing military conflict in Ukraine. President Trump plans to meet with Russian President Vladimir Putin in Alaska on Friday to negotiate peace and discuss international trade conditions.

Blacklisting  platforms that offer services aimed at circumventing sanctions is crucial to OFAC's mission, Tom Robinson, co-founder of blockchain analytics firm Elliptic, told Decrypt. 

We've seen stablecoins become an increasingly important tool for Russian businesses seeking to evade sanctions, Robinson said, adding that those include both dollar-backed stablecoins such at USDT and ruble-backed alternatives.

"If the U.S. is serious about enforcing the sanctions it has already imposed, it has to address these crypto workarounds," he added.

OFAC previously sanctioned Garantex in April 2022 for its ties to the Russian financial sector, shortly after the Ukraine War began. The sanctions aligned with broader efforts by U.S. companies to cut ties with Russian businesses and banks over the Eastern European power's invasion of its neighbor to the west.

This latest designation adds to the agency's list of sanctioned crypto firms, which also includes Russian-language exchanges Cryptex, Bitpapa, and Chatex.

Recommended News