Tether Freezes 2.5 Billion Rubles in Russian Garantex Exchange Accounts, Prompting Temporary Suspension of Services. Tether has frozen the wallets of Russia's Garantex cryptocurrency exchange, rendering 2.5 billion rubles inaccessible. Following this, Garantex announced the temporary suspension of all operations, including cryptocurrency withdrawals. The company’s representatives have stated that they are working on resolving the issue and will not give up the fight.
This event follows new sanctions imposed by the European Union on Garantex. According to a list published on February 24, the exchange was found to have close ties with Russian banks, including Sberbank, T-Bank, and Alfa-Bank. This is not the first time Garantex has been sanctioned. In April 2022, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) blacklisted the exchange, accusing it of failing to meet anti-money laundering and anti-terrorism financing obligations.
Garantex’s communications director, Yevgeniya Burova, has claimed that the decision is unjust, emphasizing that the exchange operates fully in compliance with Russian law. She also denied allegations of Garantex’s involvement in $20 billion worth of transactions under investigation by the U.S. and U.K. authorities.
Tether has a long-standing partnership with U.S. authorities and law enforcement agencies and plays an active role in blocking wallets affected by sanctions. Additionally, Tether invests heavily in U.S. government debt, with its investments in Treasury securities reaching $80.3 billion in the fourth quarter of 2023.
Garantex representatives state that Tether’s decision to block the wallets could have a significant impact on the Russian cryptocurrency market. If USDT becomes too risky for users, the stablecoin’s reputation in Russia could rapidly decline. Currently, the Russian cryptocurrency sector is facing serious sanctions, creating substantial uncertainty for local exchanges and investors. Garantex’s management is working to resolve the issue.
