Authorities have taken down Garantex, a Russian crypto exchange that was a key player in enabling criminal activities, including ransomware and darknet market operations. The U.S. Secret Service led the international effort, executing a U.S. warrant.
U.S. Secret Service seizes Garantex website linked to cybercrime
As part of a broader crackdown by Western governments, the official Garantex website was replaced with a seizure notice on Thursday. This follows recent sanctions imposed on Garantex by the European Union, which stated that the exchange is “closely associated with EU-sanctioned Russian banks.” These sanctions are part of ongoing measures against Russia stemming from its invasion of Ukraine.
In 2022, Garantex was sanctioned by the U.S. Treasury, which alleged that over $100 million in transactions conducted on the platform were linked to illicit actors and darknet markets. Notable mentions include the Russian ransomware group Conti and the darknet market Hydra.
Nate Herring, a spokesperson for the U.S. Secret Service, confirmed to TechCrunch that the agency had seized website domains associated with Garantex as part of an ongoing investigation, although he refrained from further comment.
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The takedown involved coordination with several agencies, including the U.S. Department of Justice, the FBI, Europol, and various European law enforcement offices such as the Dutch National Police and the German Federal Criminal Police Office.
Shortly before the website seizure, Garantex announced on Telegram that Tether, a stablecoin operator, had frozen more than 2.5 billion rubles (approximately $28 million) from their wallets. In response, Garantex announced a temporary suspension of all services, including cryptocurrency withdrawals, as they addressed the situation. They stated, “Tether has entered the war against the Russian crypto market and blocked our wallets worth more than 2.5 billion rubles.”
Founded in 2019, Garantex has grown to be one of Russia’s largest cryptocurrency exchanges, especially following the 2022 invasion of Ukraine. The platform enabled users to circumvent sanctions on Russian banks by exchanging rubles for cryptocurrency at its Moscow and St. Petersburg offices, which could then be converted into other fiat currencies.
U.S. and European law enforcement agencies have repeatedly accused Garantex of facilitating activities related to cybercriminals, gangs, and designated terrorist groups. Following the seizure, Garantex made no mention of it in their official Telegram channels, only announcing the service suspension in light of the actions taken by Tether.
Featured image credit: Screenshot/Dataconomy
