The U.S. Secret Service, in coordination with a coalition of international law enforcement agencies, took down the website of Garantex. This Russian cryptocurrency exchange had been accused of facilitating illicit activities, including connections to darknet markets and ransomware groups. The website was seized after a warrant was issued by the U.S. Attorney’s Office for the Eastern District of Virginia. This seizure represents a significant step in Western efforts to disrupt illicit financial operations linked to Russia, especially amidst rising global tensions.
Garantex had previously attracted sanctions from both the U.S. Treasury and the European Union for its alleged involvement in illegal activities.
The U.S. Treasury had claimed that more than $100 million worth of transactions processed through the platform were tied to ransomware gangs and darknet markets, such as the Conti ransomware group and Hydra. Additionally, the European Union imposed sanctions against Garantex, citing its close ties with Russian banks under European sanctions. These sanctions are part of a broader effort to target financial systems supporting illegal operations, particularly in response to the ongoing geopolitical situation involving Russia.
The Secret Service confirmed that it was involved in seizing the Garantex domain as part of an ongoing investigation.
The operation was conducted with the collaboration of numerous international law enforcement agencies, including the FBI, Europol, and police forces from Germany, Finland, the Netherlands, and Estonia. Despite the widespread coordination, the involved agencies declined to provide additional comments on the operation. The seizure marks another step in the U.S. government’s efforts to dismantle infrastructure enabling cybercrime and illicit financial flows connected to Russia’s political landscape.
In response to the seizure, Garantex suspended all its services, including cryptocurrency withdrawals, and announced the move through its Telegram account. The exchange attributed its decision to the freezing of $28 million in cryptocurrency by stablecoin issuer Tether. While Garantex did not address the seizure directly in its official channels, it assured its users that the situation was temporary. The exchange emphasized its resolve to fight back, though its long-term viability appears uncertain, especially after such significant legal actions have been taken against it.
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