Sanctioned Garantex Resurfaces as Grinex, Evades U.S. Restrictions
1min read Garantex, a Russian cryptocurrency exchange that was sanctioned by the U.S. Treasury in 2022 for allegedly facilitating illicit transactions, has reportedly resurfaced under a new name, Grinex. According to a report by a blockchain analytics company, Garantex has transferred its liquidity and customer balances to Grinex, effectively continuing its operations despite the sanctions.
The report highlights that Garantex laundered over $60 million worth of ruble-backed stablecoins, A7A5, through a process of burning and reminting to erase transaction histories. These funds were then transferred to Grinex, allowing the new platform to operate with clean records. Grinex began receiving large transaction volumes soon after Garantex went offline, with incoming transfers exceeding $29 million by mid-March. Blockchain data also showed systematic fund movements through one-time-use wallets before settling in Grinex’s deposit addresses.
Users have confirmed that previously blocked funds on Garantex were appearing in their Grinex accounts. Additionally, a Grinex staff member admitted in private conversations that customers were physically visiting Garantex’s office to move funds between the two platforms. The report also noted that the Grinex website closely resembles Garantex’s interface, and promotional materials suggest that Garantex’s founders created Grinex in response to the sanctions. A crypto-tracking platform lists Grinex as being founded by the same team behind Garantex, further supporting the connection between the two exchanges.
Ask Aime: What is the impact of Garantex's new Grinex platform on the cryptocurrency market and the potential legal implications?
Garantex was officially shut down on March 6, just days after Tether froze nearly $27 million in ruble-backed stablecoins. Despite the crackdown, Garantex continued operating, processing funds through sanctioned Russian banks to serve local users. A week later, Indian authorities arrested Garantex co-founder Aleksej Bešciokov, who now awaits extradition.
The resurgence of Garantex as Grinex raises significant concerns about the effectiveness of sanctions and the ability of illicit actors to circumvent regulatory measures. The use of stablecoins and the transfer of funds through one-time-use wallets demonstrate the sophisticated methods employed by these exchanges to evade detection. The continued operation of Grinex, despite the sanctions and shutdown efforts, highlights the need for enhanced regulatory oversight and international cooperation to address the challenges posed by illicit cryptocurrency activities.
