The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury has expanded its sanctions list to include the Russian cryptocurrency exchanges Garantex and Grinex, along with several associated companies and individuals. The reason for this action is allegations of money laundering involving illegally obtained funds and facilitating evasion of restrictions imposed on Russia.
This is reported by Business • Media
Garantex and Grinex: Mechanisms for Evasion of Sanctions and New Restrictions
The cryptocurrency exchange Garantex has been under OFAC sanctions since April 2022 for facilitating the laundering of over $100 million related to illegal activities. In February 2025, restrictions against the platform were also imposed in the European Union. In March of the same year, the company Tether, the issuer of USDT, blocked Garantex wallets containing assets worth approximately $28 million (2.5 billion rubles), leading to the cessation of the exchange’s operations.
Following Garantex’s exit from the market, a new exchange, Grinex, emerged in Russia, which Global Ledger describes as the de facto successor to Garantex. According to the U.S. Treasury, Grinex is closely linked to the previous platform, and its activities are aimed at circumventing international sanctions. Restrictions have also been imposed on three executives of Garantex and six companies operating in Russia and the Kyrgyz Republic.
OFAC notes that after the blocking of Garantex wallets, clients’ funds were transferred to Grinex accounts, and promotional materials from the latter explicitly indicate the establishment of the platform in response to sanctions.
Scale of Operations and the Role of Stablecoin A7A5
According to a report by Global Ledger, from March 5 to August 14, Grinex conducted transfers totaling 7.3 billion USDT. A total of 312 wallets associated with this exchange were identified, of which four remain active and have not been sanctioned. Additionally, 180 exchanges were recorded that conducted direct or indirect transactions with Grinex wallets totaling $1.66 billion.
To conduct operations and compensate for losses incurred by clients on Garantex, the ruble stablecoin A7A5, issued by the Kyrgyz company Old Vector, was used. This asset was created for A7 Limited Liability Society and affiliated structures owned by the sanctioned oligarch Ilan Shor and the Russian bank Promsvyazbank (PSB).
“The project demonstrates stable, albeit likely simulated, trading dynamics and continues to inject liquidity into USDT, while simultaneously strengthening its off-chain presence, with a particular focus on brand growth, reputation, and official representation as a company based in Kyrgyzstan,” the report states.
Experts from Global Ledger note that a significant portion of A7A5’s liquidity is formed through so-called wash trading; however, the project is focused on long-term development, as evidenced by consistent growth in volumes and structural organization.
As a result, the following entities were added to the OFAC sanctions list:
- Garantex;
- Grinex;
- Old Vector;
- A7, A71, and A7 Agent;
- Garantex co-founder Sergey Mendeleev;
- Garantex co-owner and commercial director Alexander Mir Serdya;
- Garantex co-owner and regional director Pavel Karavatsky;
- Payment platforms InDeFi Bank and Exved, created by Sergey Mendeleev for operations with Garantex and Grinex.
All property, rights, and companies in which the listed individuals own more than 50% are subject to blocking. Any counterparties cooperating with these individuals or structures, including in the financial sector, also risk being subjected to sanctions.
Additionally, U.S. authorities have announced a reward of up to $6 million for information leading to the arrest or conviction of Garantex management, with a significant portion of this amount allocated for information about Alexander Mir Serdya.
