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The U.S. Secret Service, in collaboration with multiple international law enforcement agencies, has taken down the domain of the Russian cryptocurrency exchange Garantex. This action is part of an ongoing effort to curb illegal financial activities linked to sanctioned entities and to combat the growing threat of cybercrime.
the Situation
Garantex, a Russian cryptocurrency exchange, has been sanctioned due to its involvement in illicit transactions with darknet markets and criminal organizations, including ransomware groups like Conti. Recently, the exchange faced severe repercussions after the European Union imposed sanctions on it. This resulted in Tether blocking Garantex’s wallets, halting the exchange’s services temporarily.
The U.S. Secret Service, in coordination with the Department of Justice’s Criminal Division, the FBI, Europol, and other law enforcement bodies, seized the domain “garantex[.]org.” Additionally, the domain’s name servers were changed to ensure the platform could no longer operate. Garantex had already been under scrutiny for its ties to criminal activities, such as money laundering and facilitating ransomware attacks. Despite losing its license to operate in Estonia, the exchange continued to offer services in Russia. This latest move comes after a string of international efforts to combat cryptocurrency-based crime, which continues to be a growing concern for global regulators.
What Undercode Says:
The seizure of
Garantex’s history of facilitating transactions linked to darknet markets like Hydra and ransomware operations such as Conti underscores the dangers of crypto exchanges operating without proper oversight. Despite losing its license in Estonia, the exchange continued to serve customers, exposing how regulatory actions in one jurisdiction may not always be sufficient to curb global activities of rogue entities. This situation is a reminder of the importance of international cooperation in addressing cross-border crime.
For authorities, this action is significant not only in terms of disrupting illegal activities but also as a warning to other exchanges that fail to comply with international laws. The move also illustrates the growing importance of blockchain analytics, which are being used to track the flow of illicit funds and target platforms that facilitate criminal behavior.
The enforcement actions against Garantex, Cryptex, and others also reflect a larger trend in the cryptocurrency space: a tightening of regulations aimed at preventing money laundering and the financing of terrorism. With more exchanges being targeted, the landscape for cryptocurrency trading is shifting, and it’s becoming increasingly difficult for exchanges to operate outside the law without facing severe consequences.
From a legal and financial perspective, these seizures send a strong message to other exchanges and actors involved in illicit crypto activities. It’s clear that the regulatory environment is evolving, and exchanges that wish to operate internationally will need to adopt stricter compliance measures to avoid similar fates.
Fact-Checker Results:
- Seizure of Domain: The U.S. Secret Service seized Garantex’s domain, with support from other international agencies.
2. Tether’s Action: Tether blocked the
- Sanctions and Criminal Ties: Garantex had been linked to over $100 million in transactions related to cybercrime and ransomware operations.
References:
Reported By: https://www.bleepingcomputer.com/news/security/us-seizes-domain-of-garantex-crypto-exchange-used-by-ransomware-gangs/
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