Breaking: Russia’s Garantex Suspends All Operations as Tether Freezes $28M in USDT

Garantex, Russia’s largest cryptocurrency exchange that has been under sanctions, has suspended all of its operations after Tether froze over 2.5 billion rubles (approximately $28 million USD) worth of USDT in Russian wallets.

In a statement released on March 6 via Telegram, Garantex informed its users that it was temporarily halting all services, including cryptocurrency withdrawals, as a result of the frozen USDT. The exchange claims that Tether’s actions amounted to an “attack” on the Russian crypto market. “Tether has waged war against the Russian crypto market and blocked our wallets for more than 2.5 billion rubles,” the exchange said. Garantex reassured users that they are working to resolve the situation and remain determined to fight the issue.

The exchange also issued a warning to its Russian customers, stating that all USDT in Russian wallets is now at risk due to Tether’s actions. However, Tether has not made any public comment about freezing these funds as of press time. The stablecoin issuer has previously been scrutinized for its transactions involving Russian-linked entities, which have raised questions regarding its relationship with sanctioned organizations and individuals.

This latest development comes after Garantex was added to the European Union’s sanctions list, following similar actions by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which first blacklisted the exchange in April 2022. The U.S. Treasury alleged that Garantex was facilitating illicit financial transactions, including funds associated with ransomware groups like Conti and the now-defunct Hydra marketplace.

Despite these sanctions, Garantex continued operations in Russia, facilitating services through Russian banks that were also under sanctions. The exchange’s shutdown marks a significant escalation in the ongoing global efforts to crack down on Russian-linked crypto operations.

As of now, Garantex’s future remains uncertain, and it is unclear how the situation will unfold or if the platform will be able to resume operations following these disruptions.