- Garantex, Grinex, and executives face sanctions for allegedly processing over US$100 million (AU$153.97M) in illicit cryptocurrency.
- The exchange reportedly moved hundreds of millions in criminal proceeds linked to hacking, ransomware, terrorism, and drug trafficking.
- A7A5 stablecoin issuer Old Vector and subsidiaries were sanctioned, connected to Promsvyazbank and other sanctioned Russian actors.
The US Treasury’s Office of Foreign Assets Control (OFAC) has taken action against the Russian cryptocurrency exchange Garantex and its successor, Grinex. The sanctions target the platforms for allegedly facilitating illicit transactions exceeding US$100 million (AU$153.97 million) since 2019.
OFAC has redesignated Garantex Europe as a sanctioned entity and targeted Grinex, key Garantex executives Sergey Mendeleev, Aleksandr Mira Serda, and Pavel Karavatsky, as well as Mendeleev’s companies InDeFi Bank and Exved, which allegedly facilitated crypto trading for sanctioned Russian businesses.
The sanctions also include Kyrgyzstan-based firm Old Vector and its subsidiaries, which issued the ruble-backed stablecoin A7A5. The token, used by Russian users of cross-border platform A7 LLC, was backed by Russia’s state-owned Promsvyazbank and Moldovan politician Ilan Shor, both of whom were previously sanctioned.
Related: Ditch the Dollar: Russian Official Backs Local Stablecoin Development
Protecting the US Financial System
According to officials, Garantex processed hundreds of millions in criminal proceeds connected to hacking, ransomware, terrorism, and drug trafficking, causing substantial harm to US victims. Between April 2019 and March 2025, the exchange reportedly handled at least US$96 billion (AU$14.78 billion) in cryptocurrency transactions.
The Treasury’s latest action followed earlier measures taken in 2022, when Garantex was sanctioned for willfully ignoring Anti-Money Laundering and Combating the Financing of Terrorism requirements. At that time, authorities seized US$26 million (AU$40.03 million) in crypto, confiscated the exchange’s website, and indicted two executives.
John Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasised that exploiting cryptocurrency exchanges for money laundering and ransomware not only threatens US national security but also damages the credibility of legitimate virtual asset providers.
Digital assets play a crucial role in global innovation and economic development, and the United States will not tolerate abuse of this industry to support cybercrime and sanctions evasion.
OFAC coordinated the sanctions with the US Secret Service and FBI to cut off digital asset channels used for illicit activity.
Related: US Secret Service Becomes Major Crypto Custodian After US$400M Seizure
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