OFAC Sanctions A7A5 Ruble-Backed Token, Grinex and Garantex
On August 14, 2025, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the A7A5 ruble-backed token, its issuer Old Vector, and the Grinex and Garantex exchanges in a sanctions action targeting Russian-linked crypto networks. OFAC sanctions aim to curb sanctions evasion via crypto rails. A7A5, issued by Kyrgyzstan’s Old Vector and collateralized by deposits at sanctioned Promsvyazbank, has processed over $51.17 billion in on-chain trading volume primarily on Tron (TRX) and Ethereum (ETH) networks during weekdays. Following the March takedown of Garantex, tokens burned on Garantex were reissued to support liquidity on Grinex, which absorbed former Garantex users. A newly launched centralized DEX for A7A5-to-stablecoin swaps has moved $1.46 billion, raising concerns about sanctions evasion through cross-border crypto rails. This move underscores Russia’s legislative push to legalize crypto payments for cross-border transactions and highlights compliance risks and potential liquidity pressures for the A7A5 ruble-backed token.
Bearish
The OFAC sanctions on the A7A5 ruble-backed token and its related platforms are bearish for A7A5’s outlook. In the short term, increased compliance risk and the asset burn-and-reissue cycle following Garantex’s closure are likely to trigger sell-side pressure and fragmented liquidity. Over the longer term, sustained regulatory scrutiny and potential delistings could undermine confidence, limit adoption, and suppress demand for the A7A5 ruble-backed token, hampering any price recovery.