U.S. Sanctions Russian-Linked Crypto Network Over Ruble-Backed Stablecoin and Garantex Ties

The U.S. Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on a network tied to the defunct Russian crypto exchange Garantex and the ruble-pegged stablecoin A7A5. The move targets entities allegedly facilitating sanctions evasion for Moscow.

Garantex, once Estonia-licensed, processed over $100 million in ransomware and darknet transactions before its domain was seized in March. Its successor, Grinex, reportedly used the A7A5 token—issued by Kyrgyz firm Old Vector—to restore user access after enforcement actions.

The stablecoin draws backing from sanctioned Russian state bank Promsvyazbank and Moldovan politician Ilan Shor, convicted in a $1 billion fraud case. OFAC's action freezes Old Vector and related entities out of the dollar system, marking continued scrutiny of crypto's role in geopolitical finance.