US Treasury Escalates Crackdown on Garantex with Second Sanction

The U.S. Treasury Department has intensified its regulatory assault on illicit cryptocurrency activity, imposing fresh sanctions on Garantex Europe OU and its successor platform, Grinex. The move targets the Russian-linked exchange for allegedly processing over $100 million in transactions tied to ransomware groups, darknet markets, and cybercriminal operations.

OFAC's latest action sanctions three Garantex executives and six affiliated companies across Russia and Kyrgyzstan. Treasury officials accuse the exchange of persistently facilitating ransomware payments despite its 2022 designation for operating in Russia's financial sector. "Exploiting crypto exchanges to launder money undermines national security and stains the reputation of legitimate VIRTUAL asset service providers," said Under Secretary John K. Hurley.

Authorities allege Garantex processed transactions for notorious ransomware strains including Conti, LockBit, and Black Basta. The crackdown reflects growing regulatory scrutiny of cryptocurrency platforms with suspected ties to illicit finance networks.