The U.S. Treasury Department has announced sanctions on crypto addresses tied to Yemen's Houthis and the Russian platform Garantex as part of efforts to curtail their funding mechanisms.
The Essence of U.S. Sanctions
The Office of Foreign Assets Control of the U.S. Treasury has imposed sanctions on eight cryptocurrency addresses used by the Houthis for activities like arms procurement and sanctions evasion. Data from Chainalysis and TRM Labs reveals sanctions on six private wallets and two deposit addresses at mainstream services, involved in nearly a billion dollars of illicit transactions.
Garantex’s Role in Houthi Financing
On-chain analysis shows the Houthis funneled over $45 million through the Russian exchange Garantex, flagged by OFAC for facilitating terrorist financing. Despite Garantex’s announced closure, reports indicate its reemergence under the new name Grinex.
Consequences and International Reactions
TRM Labs indicates millions continue flowing to other high-risk, OFAC-sanctioned entities. In late January, U.S. President Donald Trump re-designated the Houthi movement as a foreign terrorist organization, citing threats to American security and global trade stability.
The sanctions targeting crypto addresses and the Garantex platform underscore the U.S. commitment to disrupting terrorist financing. Garantex's reemergence under a new name raises concerns about the continuation of these operations.
