Garantex, Russia’s largest sanctioned cryptocurrency exchange, has temporarily shut down all services following a major freeze on its assets by Tether.
The stablecoin issuer blocked over 2.5 billion rubles ($27 million) worth of USDT, sparking immediate disruption for the exchange and its users.
In a statement on Telegram on March 6, Garantex confirmed the service suspension, calling Tether’s action a “war against the Russian crypto market.” The platform assured users it is actively working on a resolution but warned that all USDT held in Russian wallets is now at risk.
The move comes amid increasing international sanctions against Garantex. The European Union recently blacklisted the exchange, strengthening restrictions first imposed by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) in April 2022. Garantex was accused of facilitating illicit transactions linked to darknet markets, ransomware groups, and Russian financial networks.
The sanctions targeted companies helping Russia evade trade restrictions, including firms transporting Russian crude oil and a Chinese satellite imagery company linked to Russian military intelligence. Media outlets promoting Kremlin-backed propaganda were also sanctioned.
Despite past sanctions, Garantex continued operations via Russian banks, but Tether’s asset freeze has forced the exchange to stop cryptocurrency withdrawals and services. Tether has not commented on the decision and is under renewed scrutiny for its connections to Russian-linked entities amidst global financial sanctions.
Garantex, meanwhile, has vowed to fight back, stating: “We fight and we will not give up!” However, with mounting pressure from Western authorities and key financial infrastructure now compromised, the future of the exchange remains uncertain.
This latest move by Tether comes amid a period of record-breaking financial success for the stablecoin issuer. In its latest attestation report, released on January 31, Tether Holdings Limited announced a net profit of over $13 billion for 2024. The report, audited by international accounting firm BDO, confirmed the company’s financial stability and its growing dominance in the stablecoin market.
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