The European Union has targeted Russia’s largest sanctioned Crypto Exchange, although analysts note that it has successfully operated under sanctions.
On Monday, February 24, the European Council launched the 16th ban package, which included the Russian Cryptocurrency Exchange Gurantex in the list, as it is “closely associated with the Russian banks approved by the European Union.”
The Garantex appears to be one of the largest Russian Crypto exchanges working within the approach of the Kremlin. The exchange has offices in Moscow Federation Tower skyscrapers and according to its website, provides deposits and withdrawal of cash rubles in Russian bank cards including Seberbank, Tinkoff and Alpha-Bank.
The European Council’s sanctions against Garantex came two years later Put in black list In 2022 by the office of the US Treasury by the Office of Foreign Property Control.
‘Will not have a big impact’
In late 2019, Russian technical experts Stanislav Druglev and Sergei Mendeleev, a former KGB officer, were originally located in Estonia and have been subject to prolonged investigation to their role in illegal transactions facilities.
Per data From the US-based blockchain intelligence firm Channelis, the exchange helped facilitate the payment related to the ransomware gangs and dark markets, including the infamous Hydra Marketplaces, which was shut down in April 2022. According to various resources, gecentaux was also used by various criminal organizations and terrorist groups including Hizbullah.
Talking with Crypto.news, Andrew Fiemen, the channel of the National Security Intelligence, said that the gerentex remains active “years after the US and Britain approve it.”
“The European Union steps, by increasing the requirements of more restrictions for the European Union institutions, will probably not have a major impact on the overall operation of the guaranteex. However, it symbolizes the European Union’s efforts to maintain economic pressure on Russian financial services and now, cryptocurrency exchanges. ,
Fiermen note that the trust “plays an important role in the Russian Cryptocurrency ecosystem.” He also stated that despite the latest sanctions, Garantax will have a large part until it is on. ,
“Garantex is typically a reliable platform within Russia and has a stable liquidity reserves, which is unlikely that the users will now move away from the platform. As we have seen with other exchanges in Russia, such as Berebit, which stopped the return, and instead offered chocolate to its customers and later on Russian law enforcement, or organizations affected by international law enforcement efforts, such as such as Germany’s BKA 47 small was reduced, no-KYC platform, users will be likely to flock to services where their money is the most safe. ,
The reliance of the guarantex is not only tied to its long -standing appearance in Russia, but also has a clear support from the Kremlin. March 2024 Investigation Esti Ekspress and the International Union of investigative journalists exposed the relationship between Garantex colleagues and the Russian government. The report found that one of the exchanges co-founders died in mysterious circumstances, and soon after, another shareholder, who, with a relationship with Rosant, the Kremlin-Nocative Oil Veteran, controlled the company’s records Done
US-based digital forensic analyst Richard Sanders said that the Russian government is likely to have an vested interest in allowing guaranteex to operate.
“The intelligence value received by the Russian government can be obtained, it overtakes their will to prosecute criminals and the government has more profit from great profit to consider unforty nation. Garantex has darkness[net] Market and ransomware groups as top customers. ,
Guarantex has defended its operation, claiming that it works actively to prevent illegal activities and collaborates with international law enforcement agencies as per the investigation. However, from April 2022, US Treasury sanctions highlighted the role of exchange in illegal transactions facilities.
According to George Volocin, a financial crime analyst in the Association of Association of Certified Anti-Mani Laundering experts, Gentax informally operates as an informal money-transfer network, often called “hawala” system, which is often called “hawala” system, which regulation and traditional financial financial Avoids surveillance.
Isabella Chase, head of the policy for the UK and the European Union at the Blockchain Forensic firm TRM Labs, told Crypto.News in a comment that despite being approved by the US in 2022, Garacentax continued to process billions in “annual transactions”. , Cyber criminal and approved institutions are allowed to be launched with minimal inspection.
As data From TRM Labs, Garantex and Eranian Crypto Exchange Nobitex are responsible for more than 85% flow for sanctioned institutions and courts.
“The European Union restrictions on Garantex are aimed at further banning their ability to operate internationally, which increases the difficulty of looting illegal funds. However, enforcement is important-Without strong international cooperation, cyber criminals can transfer their activity to alternative non-transport exchanges or decentralized platforms. Garantex is not the only option for bad actors. ,
Isabella Chase
TRM Labs stated that TRM Labs has identified the exchange as a major architect, other underground banking network, peer-to-pier platforms and decentralized finance services.
Despite efforts to look cooperative with law enforcement, Garantax’s Russian government and suspected actors raise concerns, analysts warned that its ongoing operation under the Kremlin oversight threatens the international security and global crypto market due to its ongoing operations under the Kremlin oversite. .
