US Treasury Sanctions Garantex, Grinex in $1.66B Crypto Laundering Probe
The US Treasury sanctions have been expanded by OFAC, reintroducing the Garantex exchange and its successor Grinex to the sanctions list for laundering illicit crypto and evading Russian restrictions. The measures block all property and transactions of both platforms, three executives and six related companies in Russia and Kyrgyzstan. Authorities traced $1.66 billion in USDT transactions through 312 wallets linked to Grinex, which processed 7.3 billion USDT between March and August. After Tether froze Garantex wallets holding 2.5 billion rubles, clients’ funds were redirected to Grinex. The ruble stablecoin A7A5, issued by Old Vector (owned by oligarch Ilan Shor and Promsvyazbank), was used to replenish losses. OFAC also sanctioned Old Vector, A7 entities and payment platforms InDeFi Bank and Exved. A reward of up to $6 million is offered for information leading to the arrest of key figures, especially Alexander Mira Serda.
Bearish
This news is classified as bearish because the US Treasury sanctions signal an intensification of regulatory scrutiny over crypto platforms involved in illicit finance. Past similar actions—such as the Treasury’s sanctioning of Tornado Cash—have tightened compliance requirements, discouraged institutional involvement and triggered short-term sell-offs in related assets. Blocking $1.66 billion in USDT flows and imposing measures on stablecoin-linked entities like Old Vector’s A7A5 heightens counterparty risk and could prompt traders to reduce leverage or shift capital to lower-risk products. In the long term, while major cryptocurrencies may adapt, sustained regulatory pressure often depresses market sentiment and liquidity across the sector.