Tether Halts Operations on Garantex with $27M Freeze

Tether, the issuer of the world’s largest stablecoin, has frozen $27 million worth of USDT on Garantex, a Russian cryptocurrency exchange under U.S. and EU sanctions. This move has resulted in Garantex suspending all trading and withdrawal services, signaling increased enforcement of financial restrictions in the crypto space.

Garantex Confirms Freeze & Service Suspension

Garantex announced on Telegram that Tether had frozen 2.5 billion rubles worth of USDT, leading to a complete halt in operations. The platform’s website is currently under maintenance, and Russian users have been warned that “all USDT in Russian wallets are currently under threat.”

Sanctions & Regulatory Scrutiny

• EU Sanctions: Garantex was included in the EU’s 16th package of sanctions against Russia on February 26, 2025.
• U.S. Sanctions: The U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Garantex in April 2022, citing its involvement in illicit transactions and failure to comply with AML and CFT regulations.
• Darknet Links: Reports suggest that over $100 million in transactions on Garantex were linked to cybercriminals and darknet markets, including the Conti ransomware group and the now-defunct Hydra marketplace.

Investigations into Potential Sanctions Breaches

U.S. and U.K. authorities are investigating over $20 billion in USDT transactions processed through Garantex, potentially one of the largest breaches of sanctions imposed on Russia since the Ukraine conflict began. While no conclusions about Tether’s direct involvement have been reached, the investigation remains ongoing.

Tether’s Compliance & Law Enforcement Cooperation

This latest freeze underscores Tether’s cooperation with global law enforcement. The company has previously assisted the FBI and DOJ, helping seize $1.4 million USDT from a tech support scam network. The move further highlights the growing role of stablecoin issuers in financial compliance and regulatory enforcement.

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