The Article Tells The Story of:
- Russian Crypto Exchange Seized – U.S. Secret Service shuts down Garantex, linked to darknet markets and ransomware.
- Global Law Enforcement Effort – Agencies from the U.S., EU, Germany, and others coordinated the takedown.
- $28M Frozen in Tether – Stablecoin issuer Tether blocked millions amid the crackdown.
- Garantex Goes Silent – Exchange halts services but vows to fight back.
Garantex Website Seized
The U.S. Secret Service, along with international agencies, has taken down Garantex, a Russian cryptocurrency exchange linked to darknet markets and ransomware hackers. The move follows allegations of facilitating illicit transactions.
On Thursday, Garantex’s official website displayed a notice confirming its seizure by the U.S. Secret Service. The warrant came from the U.S. Attorney’s Office for the Eastern District of Virginia. The exchange’s domain now points to servers controlled by the Secret Service.
This seizure is part of ongoing efforts to combat cybercrime. Garantex had been under scrutiny for its role in processing funds tied to illegal activities.
History of Allegations
Western governments have targeted Garantex in recent years. The U.S. Treasury sanctioned the exchange in 2022, citing more than $100 million in transactions linked to illicit actors and darknet markets. These transactions involved the Conti ransomware gang and Hydra, a darknet marketplace.
Last month, the European Union also imposed sanctions on Garantex, highlighting its connections to Russian banks under EU sanctions. The crackdown aligns with broader sanctions on Russia following its invasion of Ukraine.
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International Cooperation
The seizure involved multiple law enforcement agencies. These included the U.S. Department of Justice, FBI, Europol, the Dutch National Police, Germany’s Federal Criminal Police Office (BKA), the Frankfurt General Prosecutor’s Office, the Finnish National Bureau of Investigation, and the Estonian National Criminal Police.
Despite outreach from media outlets, Garantex did not respond to requests for comment. The FBI also declined to provide additional details.
Service Suspension and Asset Freezing
Following the seizure, Garantex suspended all services, including cryptocurrency withdrawals. The decision came after Tether, a stablecoin issuer, froze $28 million worth of its cryptocurrency on the platform. The company announced the suspension via its Telegram channel but made no reference to the law enforcement action.
Garantex expressed defiance, stating, “We are fighting and will not give up!” However, the future of the exchange remains uncertain.
Impact on the Crypto Market
The seizure marks another blow to crypto exchanges involved in illegal transactions. Law enforcement agencies continue to target platforms enabling criminal activities. The crackdown highlights the growing cooperation between international authorities to regulate the crypto market.
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Authorities advise crypto users to verify the legitimacy of exchanges before conducting transactions. The incident serves as a warning to platforms facilitating illicit activities.
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