U.S. Sanctions Target Russian Cryptocurrency Exchange Garantex
U.S. authorities announced on Thursday the imposition of sanctions against the Russian cryptocurrency exchange Garantex, its successor Grinex, and associated entities. Additionally, the U.S. is offering financial incentives for information leading to the arrest of the exchange’s leadership. This move is part of a broader initiative aimed at disrupting the flow of ransomware funds that these platforms are believed to facilitate. The Treasury Department’s Office of Foreign Assets Control (OFAC) has re-designated Garantex for sanctions, alleging that it has handled over $100 million in illicit transactions since 2019. The State Department revealed that it will provide up to $6 million in rewards for tips that result in the arrest or conviction of Garantex’s leaders, including as much as $5 million for Aleksandr Mira Serda, a co-founder of the exchange.
Expanded Measures Following International Law Enforcement Actions
Following a large-scale international law enforcement operation in March, which resulted in the seizure of three domains associated with Garantex, authorities have broadened their focus on the exchange and its leadership. This operation also led to the confiscation of servers and the freezing of more than $26 million in cryptocurrency. One of the individuals implicated, Aleksej Besciokov, was apprehended while on vacation in India shortly after indictments were filed against him and Mira Serda. The OFAC has also sanctioned Sergey Mendelev, another co-founder of Garantex, and Pavel Karavatsky, a co-owner and regional director.
Allegations of Criminal Activity and Financial Transactions
According to statements from the U.S. Secret Service and the FBI, Garantex is accused of receiving hundreds of millions of dollars in funds derived from criminal activities, playing a role in facilitating serious crimes including hacking, ransomware, terrorism, and drug trafficking, which have significantly impacted U.S. victims. Between April 2019 and March 2025, the exchange reportedly processed at least $96 billion in cryptocurrency transactions.
Transition from Garantex to Grinex
Before Garantex shifted its operations to Grinex in response to coordinated international law enforcement efforts, it had processed millions of dollars in cryptocurrency from ransomware groups linked to Russia. Investigators have traced these transactions to notorious ransomware affiliates such as Conti, Black Basta, LockBit, Ryuk, NetWalker, and Phoenix Cryptolocker. The Treasury Department noted that Grinex was established to circumvent the sanctions imposed on Garantex and has since facilitated the movement of billions of dollars in cryptocurrency.
Additional Sanctions and Industry Impact
The OFAC first sanctioned Garantex in April 2022 and has now added six more organizations to the sanctions list, including A7, A7 Agent, Old Vector, InDeFi Bank, and Exved, for their alleged support and involvement with Garantex and Grinex. John K. Hurley, the undersecretary of the Treasury for terrorism and financial intelligence, commented that the exploitation of cryptocurrency exchanges for money laundering and ransomware activities not only jeopardizes national security but also damages the reputation of legitimate virtual asset service providers. He emphasized the Treasury’s commitment to maintaining the integrity of the digital asset sector by exposing these harmful entities.
