Breaking: Russia’s Garantex suspends all operations as Tether freezes $28m in USDT

Sanctioned crypto exchange Garantex has shut down its services shortly after Tether froze nearly 2.5 billion in worth of USDT in Russian rubles.

Russia‘s largest and sanctioned cryptocurrency exchange Garantex has temporarily shut down all of its services after Tether froze over 2.5 billion rubles worth of USDT.

“Dear users! We have bad news,” Garantex said in a March 6 statement on Telegram. “Tether has waged war against the Russian crypto market and blocked our wallets for more than 2.5 billion rubles.” The exchange announced it is “temporarily suspending all services, including cryptocurrency withdrawals,” while its team works to resolve the issue. “We are fighting and will not give up!” it added.

Garantex also warned Russian users that “all USDT in Russian wallets is now at risk.” As of press time, Tether made no public statements on the move. The stablecoin issuer has previously faced scrutiny for its transactions with Russian-linked entities.

Garantex was sanctioned by the U.S. Treasury in 2022 for allegedly facilitating illicit transactions. Despite the restrictions, it continued operations, serving Russian users via sanctioned Russian banks.

The shutdown follows the European Union’s recent decision to add Garantex to its sanctions list, part of a broader effort to target financial networks linked to Moscow.

U.S. Treasury’s OFAC first blacklisted Garantex in April 2022, citing its role in processing transactions tied to illicit actors and darknet markets, including funds linked to the Russian Ransomware-as-a-Service group Conti and the now-defunct Hydra marketplace.