By Nermeen Nabil Khear TLDR
- Tether froze over $28 million in Garantex wallets, forcing the Russian crypto exchange to halt operations
- The freeze came days after the EU added Garantex to its 16th sanctions list
- US Secret Service has reportedly seized online equipment linked to the exchange
- Garantex is known for serving Russian users looking to convert rubles to crypto amid sanctions
- Tether has also recently frozen 181,000 USDT connected to the Bybit hack
The crypto world witnessed another major enforcement action as stablecoin issuer Tether (USDT) froze more than $28 million in funds held by Russian cryptocurrency exchange Garantex. This decisive move has forced the exchange to halt all trading activities and user withdrawals.
The freeze by Tether came just days after the European Union placed Garantex on its 16th sanctions list. EU authorities cited the exchange’s close ties with sanctioned Russian banks and its role in helping users bypass financial restrictions.
There is an ongoing incident with Tether freezing the whole USDT stack of the Russian-based exchange Garantex.
The exchange was blocked after multiple sanctions were imposed on it. pic.twitter.com/sK60cDzmSb
— Vladimir S. | Officer’s Notes (@officer_cia) March 6, 2025
Garantex users have been left unable to access their funds. Many had been using the platform to convert Russian rubles into digital currencies, an important service given the international sanctions against Russia.
The impact has been immediate and severe for the exchange. Without access to USDT, one of the most widely used stablecoins in the crypto market, Garantex has been forced to shut down core operations.
This is not Tether’s first action against potentially illicit activity. The company recently froze 181,000 USDT linked to the Bybit hack, showing a pattern of using its control over the stablecoin to quickly block suspicious transactions.
Law enforcement agencies have also stepped up their actions against Garantex. Reports indicate that the US Secret Service has seized online infrastructure connected to the exchange.
Garantex Under Pressure
Garantex has developed a reputation for being used by Russian ransomware groups and hackers looking to launder illegal proceeds. This reputation has made it a target for international authorities.
The exchange was founded in Moscow in 2019. It quickly became popular among Russian users seeking to convert rubles into cryptocurrency, especially as international sanctions against their country increased.
With Tether’s blockade in place, the future of Garantex looks uncertain. Global regulators are increasingly targeting exchanges believed to be violating international banking rules.
While taking action against suspected criminal platforms, Tether is also making internal changes. The company recently appointed Simon McWilliams as its new Chief Financial Officer, replacing Giancarlo Devasini who moved to the chairman position.
McWilliams brings over 20 years of experience in investment and financial audits. His appointment may help Tether move toward a full audit, something many in the cryptocurrency industry have been calling for to increase transparency.
Tether has faced other challenges recently. The company failed to obtain a court order preventing Swan Bitcoin from suing six of its former California employees following a failed joint venture on a mining operation called 2040 Energy.
Tether was concerned that the California case might give Swan access to its intellectual property. However, a London court rejected Tether’s request to halt the US legal proceedings.
The freezing of Garantex funds highlights the growing trend of cryptocurrency companies cooperating with international authorities to enforce sanctions and combat financial crime. This development shows how centralized stablecoins like USDT can be used as enforcement tools.
For users of sanctioned exchanges, this case serves as a warning about the risks of keeping funds on platforms that may be targeted by international authorities or stablecoin issuers with the power to freeze assets.
The post Tether (USDT) Freezes $28M on Sanctioned Russian Exchange Garantex appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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