Russia's largest cryptocurrency exchange Garantex has halted operations after Tether froze assets totaling 2.5 billion rubles ($27 million).
Reasons for Operational Halt
The stablecoin issuer Tether blocked over $27 million worth of USDT, causing significant disruptions for the cryptocurrency exchange Garantex and its users. In a March 6 statement on Telegram, Garantex confirmed the suspension of services, calling Tether's action a "war against the Russian crypto market."
International Sanctions Against Garantex
The operational suspension comes amid increasing international sanctions against Garantex. The European Union recently blacklisted the exchange, strengthening restrictions initially imposed by the U.S. Treasury’s Office of Foreign Assets Control in April 2022. Garantex was accused of facilitating illicit transactions linked to darknet markets, ransomware groups, and Russian financial networks.
Garantex's Response and Hope for Recovery
Despite past sanctions, Garantex continued operations via Russian banks, but Tether's asset freeze has forced the exchange to stop cryptocurrency withdrawals and services. Garantex vows to fight back, stating: "We fight and we will not give up," but increasing pressure from Western authorities and compromised financial infrastructure render the exchange's future uncertain.
Amid escalating sanctions and financial constraints, the future of Garantex remains uncertain.
