US Treasury Sanctions Russian Crypto Exchange Garantex and Ruble Stablecoin

The US Treasury's Office of Foreign Assets Control (OFAC) has imposed fresh sanctions on Garantex, a Russian cryptocurrency exchange previously targeted in 2022, along with its successor Grinex and a ruble-backed stablecoin network. Garantex processed over $100 million in illicit transactions since 2019, leading to $26 million in seized crypto assets and the shutdown of its operations.

Authorities also sanctioned the A7A5 stablecoin network, which allegedly facilitated $1 billion in daily transactions to circumvent international sanctions. The token is backed by Promsvyazbank, a Russian bank under sanctions, and has processed more than $51 billion cumulatively.

Three Garantex executives face charges including money laundering and sanctions violations, with one arrested in India. OFAC accused Garantex of willfully disregarding anti-money laundering and counter-terrorism financing requirements.