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Russian crypto exchange Garantex seized by law enforcement operation
The U.S. Secret Service has seized the Russian cryptocurrency exchange Garantex for its alleged ties to illicit activities, including ransomware and darknet markets. This follows sanctions from the EU and U.S. Treasury aimed at Garantex due to its connections with sanctioned Russian banks and claims of $100 million in illicit transactions.
Key points
- U.S. Secret Service and international agencies took down Garantex due to alleged connections to darknet markets.
- Garantex's website was replaced with a seizure notice following a U.S. Attorney's warrant.
- The exchange is accused of handling over $100 million in transactions linked to illicit activities and ransomware groups.
- Last month, the EU sanctioned Garantex, connecting it to sanctioned Russian banks.
- Following the seizure, Garantex suspended all services, including withdrawals, after Tether froze $28 million of its crypto.
Why it matters
- In 2022, the U.S. Treasury sanctioned numerous entities to combat crypto usage in crime, reflecting a growing trend globally.
- The seizure fits within a broader context of increasing regulatory scrutiny of cryptocurrency exchanges tied to illicit activities.
- This action is part of ongoing international sanctions against Russia amid the conflict in Ukraine, highlighting the intersection of crypto regulation and geopolitics.
The seizure of Garantex illustrates intensified international efforts to combat illicit cryptocurrency activities, particularly in relation to Russia's ongoing geopolitical tensions, underscoring the potential vulnerabilities of crypto exchanges amidst regulatory actions.