Tether has frozen $27 million in USDT on the Russian crypto exchange Garantex following European Union sanctions.
Context of the Situation
Tether froze funds on the Garantex exchange, which was recently sanctioned by the European Union in response to the ongoing Ukraine conflict. This action is part of the 16th package of sanctions announced on February 26, aimed at financial resources linked to the Russia-Ukraine conflict.
Garantex's Reaction
Following the freeze, Garantex announced a temporary suspension of all services and website maintenance. They stated that all USDT in Russian wallets are currently at risk, and they intend to fight for the funds' return.
Impacts and Reactions
The EU sanctions against Garantex mark the first time a cryptocurrency exchange based in Russia has been targeted. Previously, in April 2022, the US Department of the Treasury's Office of Foreign Assets Control imposed sanctions on Garantex. The exchange is closely associated with EU-sanctioned Russian banks. Tether was contacted for a comment, but no response was received by the time of publication.
The situation's further development will depend on the international community's response and potential legal action from Garantex. This case highlights the increasing sanctioning pressure on the cryptocurrency sector in geopolitical conflicts.
