US Treasury Sanctions Garantex and Grinex Over $100M in Illicit Crypto Transactions

The Office of Foreign Assets Control (OFAC) has re-designated Garantex Europe, a Russian-operated cryptocurrency exchange, to its sanctions list. The August 14 announcement also includes Grinex, the exchange’s successor, three senior executives, and six companies across Russia and the Kyrgyz Republic. Garantex processed over $100 million in transactions tied to ransomware groups Conti and LockBit, alongside darknet markets, hacking, terrorist financing, and drug trafficking.

John Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized that while digital assets drive innovation, their misuse undermines national security and legitimate VIRTUAL asset service providers. Garantex was initially sanctioned in 2022 for flouting anti-money laundering protocols before reemerging as Grinex, which introduced a ruble-backed A7A5 token post-raids in March 2025.