Tether froze 27 million USDT on the cryptocurrency exchange Garantex following European Union sanctions. The exchange has temporarily halted operations.
Garantex Suspends Trading After USDT Freeze
Garantex confirmed on its Telegram channel that Tether blocked wallets containing more than 2.5 billion rubles ($27 million). In response, the exchange temporarily suspended all services, including withdrawals, and its website is currently under maintenance.
Garantex is the Target of International Sanctions
The EU's decision has placed Garantex in its 16th package of sanctions due to Russia's war in Ukraine. Garantex is reported to have close ties with Russian banks already sanctioned by the bloc. This marks the first time the EU has imposed sanctions on a Russia-based cryptocurrency exchange, following similar sanctions by the United States in April 2022.
Tether Has Not Responded Yet
Despite the controversy, Tether has not publicly commented on the decision to freeze Garantex wallets. The incident highlights the growing regulatory pressure on crypto exchanges affiliated with sanctioned entities as authorities tighten controls on digital assets linked to illegal activities and geopolitical conflicts.
Tether's freeze of Garantex funds has drawn attention to the increased sanction pressure by the EU on cryptocurrency exchanges. This case underscores the importance of adhering to international rules and norms in the digital asset space.
