The US Treasury Department has re-designated Moscow-based cryptocurrency exchange Garantex and sanctioned its successor, Grinex, along with three executives and six associated companies in Russia and the Kyrgyz Republic.
Officials say Garantex processed more than $100 million in illicit transactions since 2019, including funds tied to ransomware attacks and darknet markets.
“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. Exploiting cryptocurrency exchanges to launder money and facilitate ransomware attacks not only threatens our national security, but also tarnishes the reputations of legitimate virtual asset service providers,” John Hurley, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, said.
Coordinated Law Enforcement Operation
The action followed a March 6, 2025, operation by the US Secret Service with German and Finnish authorities, which seized Garantex’s web domain and froze over $26 million in cryptocurrency.
The next day, the Justice Department unsealed indictments against executives Aleksandr Mira Serda and Aleksej Besciokov. Besciokov was arrested in India.
According to Treasury, Garantex moved its customer base and funds to Grinex after these measures, allowing it to continue operations despite sanctions. Founded in Estonia in 2019, Garantex lost its license in 2022 after regulators cited anti-money laundering failings and links to criminal wallets.
Related: Russia and Stablecoin Use: Ruble-Pegged A7A5 Moved $9B on One Crypto Exchange
US officials say it maintained accounts for hundreds of thousands of users and received millions from ransomware operations, including Conti, LockBit, Black Basta, and Ryuk.
Treasury alleges the exchange built infrastructure to conceal wallet ownership, enabling it to continue servicing sanctioned individuals and entities.
Creation of Grinex to Evade Sanctions
Grinex was formed by Garantex officers following the March law enforcement action. Treasury says it processed billions in cryptocurrency transactions and used a ruble-backed A7A5 token, issued by Kyrgyz firm Old Vector, to allow Garantex customers to recover frozen funds.
The token was linked to sanctioned Russian and Moldovan entities accused of facilitating cross-border payments to bypass sanctions.
Sanctioned individuals include co-founders Sergey Mendeleev and Pavel Karavatsky, and co-owner Mira Serda. Partner firms InDeFi Bank and Exved were also designated to facilitate illicit transactions and trade aimed at circumventing US sanctions.
The sanctions block all US-linked assets belonging to the designated individuals and entities. US persons are prohibited from engaging in transactions with them, and non-U.S. firms risk secondary sanctions for providing support.
Treasury said the measures are part of ongoing efforts to disrupt cryptocurrency platforms used for cybercrime, following previous actions against exchanges such as Cryptex, SUEX, and Chatex.
This article was written by Jared Kirui at www.financemagnates.com.
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