U.S. Blacklists Crypto Network Tied to Russian Stablecoin and Sanctioned Exchange

The U.S. Treasury's Office of Foreign Assets Control (OFAC) has sanctioned a network of companies linked to the defunct Russian exchange Garantex and the ruble-pegged stablecoin A7A5. The entities allegedly facilitated sanctions evasion for Moscow, with Garantex alone processing over $100 million in illicit transactions tied to ransomware and darknet markets.

Authorities seized Garantex's domain and froze $26 million in March, but operations reportedly continued through successor entity Grinex. The Kyrgyzstan-issued A7A5 stablecoin—backed by sanctioned Russian bank PSB and Moldovan fraud convict Ilan Shor—was used to restore user access after the crackdown.

OFAC's latest action blocks Old Vector, A7 LLC, and affiliates from the dollar system, marking another escalation in crypto-related sanctions enforcement. The MOVE underscores growing regulatory scrutiny of stablecoins being weaponized in geopolitical conflicts.