Sanctioned crypto exchange Garantex has recently faced a major setback as Tether, the issuer of USDT, decided to freeze $27 million worth of funds on the platform. This move has forced Garantex to temporarily suspend all crypto trading and withdrawals, leaving its users in a state of uncertainty.
In an announcement on Telegram, Garantex revealed that Tether’s decision to freeze its wallets worth more than 2.5 billion rubles has led to the suspension of all services on the platform. The exchange expressed concern that this action could set a dangerous precedent, putting all Russian USDT holdings at risk. Garantex is determined to challenge this decision, but the outcome remains uncertain.
Tether, known for its stablecoin USDT with a market capitalization of over $140 billion, has not provided an official response for the freeze as of yet. This lack of communication has left many in the crypto community puzzled and anxious about the future implications of such actions.
This latest development comes amidst growing sanctions against Garantex for allegedly aiding Russia in bypassing Western financial restrictions. The US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the exchange in April 2022 for its alleged involvement in illicit financial activities. More recently, the European Union imposed sanctions on Garantex for its connections to Russian banks already under EU restrictions. This marked a significant move by the EU to directly target a Russian crypto exchange.
Furthermore, authorities in the US and UK are investigating Garantex for facilitating transactions totaling over $20 billion aimed at evading sanctions. Regulators suspect that the exchange played a role in Russia’s financial strategies during the ongoing conflict, raising concerns about the platform’s compliance with international regulations.
As the situation unfolds, Garantex and its users are left in a state of uncertainty, with the future of the exchange hanging in the balance. The crypto community awaits further developments and clarifications from Tether regarding the freeze of funds on the platform. Stay tuned for updates on this evolving story.
Editor: Liam ‘Akiba’ Wright, Editor-in-Chief at CryptoSlate. Also known as “Akiba,” Liam Wright is a passionate advocate for decentralized technology and its potential to drive positive change on a global scale.