The US Treasury’s Office of Foreign Assets Control (OFAC) has imposed comprehensive sanctions on the cryptocurrency exchange Grinex, identifying it as the direct successor to the previously sanctioned Garantex platform. This enforcement action represents a significant escalation in US authorities’ efforts to combat cryptocurrency-enabled money laundering and cybercrime financing operations.
Establishing the Garantex-Grinex Connection
Blockchain analytics firm TRM Labs conducted extensive research in early 2025 that revealed the operational continuity between the two exchanges. Grinex was incorporated in Kyrgyzstan in December 2024 and immediately began promotional activities through the same Telegram channels previously used to advertise Garantex services to Russian-speaking users.
The technical similarities between the platforms provide compelling evidence of their connection. OFAC’s investigation revealed that Grinex maintained virtually identical user interface elements and operational features as its predecessor. According to Treasury officials, Garantex leadership established infrastructure mechanisms to facilitate the seamless transfer of client deposits to the new platform immediately following law enforcement actions on March 6, 2025.
Scale of Illicit Financial Operations
The transaction volumes processed by both platforms demonstrate the massive scale of their operations within the cryptocurrency ecosystem. Between April 2019 and March 2025, Garantex processed cryptocurrency transactions exceeding $96 billion USD, establishing it as one of the largest unregulated digital asset exchanges serving Eastern European markets.
US Treasury investigations documented Garantex’s role in laundering over $100 million for various cybercriminal organizations, including several high-profile threat actors:
• The Conti ransomware syndicate responsible for numerous international attacks
• Hydra darknet marketplace, previously the world’s largest illegal online marketplace
• Multiple advanced persistent threat groups and cybercriminal networks
Individual Sanctions and Criminal Charges
The enforcement action extends beyond corporate entities to target key personnel involved in the exchanges’ operations. OFAC designated three Garantex co-founders under sanctions: Sergey Mendeleev, Alexander Mira Serda, and Pavel Karavastky. Additionally, criminal charges have been filed against exchange administrators Mira Serda and Lithuanian national Aleksei Beshchev, with Beshchev arrested in India during a vacation.
The US State Department’s announcement of rewards up to $6 million for information leading to the arrest or conviction of Garantex leadership underscores the priority level assigned to this investigation by American law enforcement agencies.
Comprehensive Ecosystem Sanctions
The latest sanctions package demonstrates a sophisticated understanding of the interconnected nature of cryptocurrency money laundering operations. Six additional entities operating across Russia and Kyrgyzstan have been added to the sanctions list:
• InDeFi Bank
• Exved
• Old Vector
• A7, A71, and A7 Agent
This comprehensive approach aims to dismantle the entire operational ecosystem supporting these illicit financial networks, preventing the simple rebranding and continuation of services under different corporate structures.
Industry Impact and Regulatory Implications
Deputy Treasury Secretary John C. Hurley emphasized that cryptocurrency exchanges facilitating money laundering operations not only threaten national security but also damage the reputation of legitimate virtual asset service providers operating within regulatory frameworks. This statement reflects growing regulatory focus on distinguishing between compliant and non-compliant cryptocurrency businesses.
The Garantex-Grinex case illustrates the evolving sophistication of both cryptocurrency-enabled criminal operations and regulatory responses. For legitimate cryptocurrency exchanges, this enforcement action reinforces the critical importance of robust anti-money laundering compliance programs, customer due diligence procedures, and suspicious activity monitoring systems. The ability of authorities to trace operational continuity between seemingly separate platforms demonstrates the transparency inherent in blockchain technology when combined with advanced analytics capabilities. Organizations operating in the digital asset space must recognize that regulatory compliance is not merely a legal requirement but essential for maintaining industry legitimacy and fostering continued innovation within appropriate legal frameworks.
