US, UK probe Garantex’s $20B in crypto, eyeing sanctions evasion

The United States and United Kingdom are conducting investigations into crypto transactions totaling over $20 billion that are connected to the Russian exchange Garantex.

This underscores the worldwide difficulty of implementing sanctions in light of the ongoing conflict in Ukraine. The inquiry focuses on Tether (USDT) transactions conducted via Garantex, a company that was subjected to sanctions in 2022.

The investigation is prompted by suspicions that Garantex may have facilitated illegal financial activity in Russia. Russia has successfully evaded financial sanctions via the use of cryptocurrencies such as Tether, despite the global community’s attempts to prevent this.

This situation underscores the challenge of monitoring the origins and intentions of cryptocurrencies, which are inherently private.

Garantex was implicated in over $100 million of unlawful transactions by the US Treasury after moving its operations from Estonia to Moscow.

The dual function of Tether in the cryptocurrency market is now being examined, as its user-friendly nature makes it both a valuable asset and a potential target for abuse.