Recently, the Russian cryptocurrency exchange Garantex came under sanctions from the U.S. and the EU, leading Tether to freeze $27 million USDT and causing the exchange to suspend all operations.
Asset Freeze and Service Suspension
Tether blocked Garantex's assets worth over 2.5 billion rubles ($27 million) following the imposition of sanctions. The exchange temporarily halted all trading and withdrawal operations, and its website is currently under maintenance. Clients were informed that all USDT in Russian wallets is under threat.
Reaction to Sanctions on Garantex
U.S. and EU authorities imposed sanctions on Garantex due to its connections with Russian banks and illegal activities. Anton Gorelkin, deputy head of the Russian Parliament's Information Policy Committee, noted that the asset freeze is an example of Western countries' pressure on the crypto industry and emphasized that it is impossible to completely block this market for Russia.
Impact on the Crypto Market
Garantex's asset freeze underscores Tether's commitment to cooperating with law enforcement to combat criminal activity. The event highlights the role of sanctions in the current cryptocurrency space and may have significant implications for the Russian crypto market in the future.
The situation with Garantex confirmed the importance of sanction compliance in the cryptocurrency market and led to a temporary suspension of its services. It remains to be seen how this will affect other Russian crypto platforms in the long term.
