Investigations are currently underway in the United States and United Kingdom regarding cryptocurrency transactions totaling over $20 billion that have ties to the Russian exchange Garantex. The focus of the inquiry is on transactions involving Tether (USDT) conducted through Garantex, a company that faced sanctions in 2022.

The investigations stem from concerns that Garantex may have facilitated illicit financial activities within Russia, enabling the country to bypass financial sanctions using cryptocurrencies like Tether despite efforts from the international community to prevent such evasion.

This case highlights the complexities of tracking the origins and purposes of cryptocurrencies, given their inherent privacy. Following Garantex's shift from Estonia to Moscow, the US Treasury found the company implicated in more than $100 million of illicit transactions.

Furthermore, the dual role of Tether in the cryptocurrency market is now under scrutiny. While its user-friendly qualities make it a valuable asset, they also increase the risk of potential misuse.

The original article was first published on Optimisus.