The European Union (EU) has included the Russian cryptocurrency exchange, Garantex, in its sixteenth sanctions package.

Announced on February 24, 2025, the press release from the European Council stated, “For the first time, the Council also decided to sanction a cryptocurrency exchange based in Russia, Garantex, which is closely associated with EU-sanctioned Russian banks.”

According to the Council, the sixteenth sanctions package “continues targeting actors responsible for circumventing EU sanctions, including through third countries.”

“Stablecoins are being used for payments in Russia’s drone industry only to be deposited at Garantex, a sanctioned Russian crypto exchange. As long as issuers like Tether and Circle don’t identify their users, sanctions evasion cases like this will keep growing.”
— John Paul Koning (@jp_koning) August 27, 2024

Garantex Was Blacklisted By US In 2022

The crypto exchange was blacklisted by the US Treasury’s Office of Foreign Assets Control (OFAC) in April 2022. Garantex has been scrutinized for alleged ties to illicit financial activities. In 2022, US authorities accused Garantex of facilitating transactions connected to criminal actors, including ransomware groups like Conti and darknet marketplaces such as Hydra, which has since been shut down.

The inclusion of Garantex in the EU sanctions is part of a larger framework that targets 48 individuals and 35 entities directly involved in supporting the Russian war effort. The sanctions will severely limit Garantex’s operational capabilities on an international scale, disconnecting it from critical financial networks and hindering access for users outside of Russia.

As geopolitical tensions continue, further actions against cryptocurrency platforms linked to sanctioned entities are anticipated.

Crypto Laundering Plot Involving Russian Agents

In December 2024, the UK’s National Crime Agency (NCA) dismantled a major Russian money laundering operation that funneled billions through drug gangs during the pandemic. This operation, termed “Operation Destabilise,” uncovered connections between Russian elites, cybercriminals, and organized crime across 30 nations, marking one of the most significant blows against money laundering in a decade.

The operation resulted in 84 arrests globally, including 71 in the UK. Noteworthy arrests included major couriers like Fawad Saiedi and Semen Kuksov, who moved millions in drug profits before their captures and sentencing.

Key Takeaways

• The EU’s decision to sanction Garantex highlights its concerns regarding the exchange’s affiliations with Russian banks already facing sanctions.
• Garantex has a longstanding history of scrutiny due to alleged connections to illicit financial practices, and was previously blacklisted by the US Treasury’s Office of Foreign Assets Control (OFAC) in April 2022.