Russian authorities have shut down cryptocurrency exchange Garantex. The platform's website now displays a seizure notice from both US and Russian law enforcement agencies.
US Secret Service spokesperson Nate Herring confirmed the action. He described it as part of an "ongoing investigation." Officials have released few additional details.
The shutdown follows Tether's freezing of $28 million in USDT linked to Garantex on March 6. The stablecoin company's move represents growing collaboration between law enforcement and major crypto entities. Such partnerships aim to combat illicit activities in digital asset markets.
Garantex addressed the situation through its Telegram channel. "We are fighting and will not give up," the exchange stated. The platform also announced it had "temporarily suspended all services, including cryptocurrency withdrawals while our entire team solves this problem."
The frozen assets reportedly total over 2.5 billion rubles, approximately $25 million. This further complicates matters for the exchange. Garantex has faced regulatory scrutiny for years.
Western authorities have long targeted the platform. The U.S. Treasury's Office of Foreign Assets Control sanctioned Garantex in April 2022. The FBI and German authorities supported this action. Officials accused the exchange of channeling more than $100 million to questionable operators.
Specific allegations included nearly $6 million linked to the Conti ransomware group. An additional $2.6 million allegedly flowed from Hydra, a defunct darknet marketplace.
The seizure represents another chapter in the ongoing regulatory battle over cryptocurrency. US authorities have framed Garantex's activities within broader concerns about sanctioned Russian entities. This raises questions about whether officials are primarily concerned with regulation or with controlling digital assets themselves.
The coordinated takedown signals intensifying scrutiny of unregulated exchanges. International cooperation among enforcement agencies suggests similar actions may follow. For the crypto industry, this development highlights the tension between regulatory compliance and decentralization principles.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.