Garantex Rebrands to Grinex, Transfers $1.6B Despite Crypto Sanctions, Tether Freeze, and Compliance Concerns
Russian cryptocurrency exchange Garantex, which was sanctioned for alleged money laundering and sanctions evasion, has continued to move large amounts of digital assets globally despite regulatory efforts. After being listed by US and EU authorities and facing a coordinated USDT freeze by Tether in March 2025, regulators from the US, Germany, and Finland collectively froze $27 million in Garantex’s assets. However, Garantex rapidly shifted operations, utilizing Ethereum, Bitcoin, and BNB networks, and leveraging mixers like Tornado Cash and cross-chain bridges to circumvent blacklists and sanctions. Some funds were bridged to Tron and transferred to Grinex — a platform considered Garantex’s successor. Within several weeks, Grinex moved roughly $1.6 billion through international exchanges, including flows into major regulated platforms. This exposes the limits of on-chain blacklist enforcement and reveals significant delays in Tether’s freeze response, alongside evolving techniques like rapid wallet rotation and shifting to less-regulated blockchains. Compliance experts are calling for enhanced real-time blockchain analytics and dynamic AML/KYC monitoring processes. For crypto traders, these developments spotlight ongoing weaknesses in sanction enforcement and the risks posed by mixers and cross-chain bridges, potentially impacting liquidity, risk profiles, and trading strategies on compliant exchanges.
Neutral
This news illustrates the limitations in crypto sanctions enforcement, revealing how sanctioned entities like Garantex and its rebranded successor Grinex can still move substantial funds despite regulatory action and stablecoin freezes. The notable ability to bypass blacklists using mixers, cross-chain bridges, and swift wallet tactics exposes continued compliance vulnerabilities. While this highlights ongoing financial crime risks and could push exchanges to tighten controls, it does not directly signal either positive (bullish) or negative (bearish) price pressure on the crypto market. Rather, it serves as a warning and may increase short-term volatility in assets associated with the involved platforms or privacy tools. Long-term, improved compliance measures and regulatory updates may follow, but the direct effect on major cryptocurrency prices remains neutral.