Garantex Crypto Exchange Seized by Law Enforcement

Garantex Cryptocurrency Exchange Website Seized in International Law Enforcement Operation

A collaborative effort between the U.S. Secret Service and a number of international law enforcement bodies has resulted in the seizure of Garantex, a cryptocurrency exchange based in Russia.

Accusations and Alleged Connections

Garantex has been implicated in connections to illicit online activities, specifically darknet markets and groups responsible for ransomware attacks. The exchange is alleged to have facilitated transactions for these criminal entities.

The official Garantex website now displays a notice indicating its domain was seized under a warrant issued by the U.S. Attorney’s Office for the Eastern District of Virginia.

Recent Sanctions and Actions

This action follows recent sanctions imposed on Garantex by both the United States and the European Union. Last month, the EU sanctioned the exchange, citing its close ties to Russian banks already under sanctions.

In 2022, the U.S. Treasury Department sanctioned Garantex, asserting that transactions exceeding $100 million conducted through the platform were linked to illegal actors and darknet marketplaces.

Specific Allegations

These illicit transactions reportedly involved the Conti ransomware group, a particularly notorious cybercriminal organization, and the Hydra darknet market.

Official Confirmation and Participating Agencies

Nate Herring, a spokesperson for the U.S. Secret Service, confirmed the seizure of website domains associated with Garantex as part of an ongoing investigation.

The operation was conducted in coordination with a broad range of agencies, including:

• U.S. Department of Justice
• Federal Bureau of Investigation
• Europol
• Dutch National Police
• German Federal Criminal Police Office (Bundeskriminalamt or BKA)
• Frankfurt General Prosecutor’s Office
• Finnish National Bureau of Investigation
• Estonian National Criminal Police

Requests for comment were sent to all participating organizations. Only the FBI declined to provide a statement at the time of reporting.

Garantex’s Response and Service Suspension

Prior to the seizure, TechCrunch attempted to contact Garantex through official email addresses and its Telegram account, but received no response.

Analysis of Garantex’s domain records confirmed the seizure, with the web domain now pointing to servers under the control of the U.S. Secret Service.

Following the seizure, Garantex announced the suspension of all services, including cryptocurrency withdrawals, via its Telegram channel.

Tether’s Actions

This decision followed the freezing of $28 million worth of cryptocurrency by Tether, a stablecoin issuer, on the Garantex platform.

Garantex communicated to its users that all Tether holdings in Russian wallets were potentially at risk, stating they were “fighting and will not give up!”