In a significant development for cryptocurrency regulation enforcement, U.S. and European law enforcement agencies have successfully executed a coordinated operation to seize the domain of Garantex, a cryptocurrency exchange previously sanctioned for illicit activities. This operation marks a crucial milestone in international efforts to combat cryptocurrency-related financial crimes.
Unprecedented International Collaboration in Crypto Crime Enforcement
The operation demonstrated remarkable coordination between multiple law enforcement agencies, including the U.S. Secret Service, Department of Justice, FBI, and Europol. Law enforcement bodies from the Netherlands, Germany, Estonia, and Finland provided crucial support, showcasing the growing effectiveness of international cooperation in addressing cryptocurrency-related violations.
Strategic Asset Freezing and Operational Disruption
A pivotal moment in the operation came when Tether, the stablecoin issuer, froze Garantex’s crypto assets valued at approximately 2.5 billion rubles. This strategic move effectively paralyzed the exchange’s operations, forcing it to suspend activities under the guise of technical maintenance. The platform’s subsequent public statements highlighted significant concerns for USDT holders in the Russian market.
Regulatory Background and Sanctions History
Garantex had been operating under U.S. sanctions since April 2022, following investigations that revealed the exchange’s involvement in processing over $100 million in transactions linked to darknet marketplaces and ransomware groups, including the notorious Conti ransomware operation. The exchange’s regulatory troubles escalated in February 2025 with its inclusion in the EU’s 16th sanctions package.
Technical Implementation of Domain Seizure
The operation culminated in the technical seizure of the garantex.org domain. The U.S. Secret Service executed this by redirecting the exchange’s nameservers to specialized seizure servers (ns1.usssdomainseizure.com and ns2.usssdomainseizure.com), effectively terminating the platform’s online presence in its current form.
This landmark operation represents a significant advancement in the global fight against cryptocurrency-related financial crimes and emphasizes the critical importance of regulatory compliance in the digital asset space. The case serves as a powerful reminder to cryptocurrency businesses worldwide that regulatory violations can result in severe consequences, including complete operational shutdown. As regulatory frameworks continue to evolve, this enforcement action sets a precedent for future international cooperation in maintaining the integrity of the cryptocurrency ecosystem.
