🛡 U.S. Secret Service and Elliptic Take Down Russian Crypto Exchange Garantex
🚨 The U.S. Secret Service, with the assistance of blockchain analytics firm Elliptic, has successfully dismantled the sanctioned Russian cryptocurrency exchange Garantex and frozen $26 million in cryptoassets. This operation was announced on Friday.
💰 According to Elliptic's data, Garantex conducted over $60 billion in transactions since the U.S. and EU imposed sanctions in April 2022 for allegedly laundering funds related to ransomware, darknet markets, and North Korean cyberattacks. Despite attempts to obscure its wallet infrastructure, Garantex's total transactions reportedly exceeded $96 billion, including actions by Russian elites to evade sanctions following the Ukraine invasion.
🔍 The blockchain surveillance firm explained that Garantex used sophisticated cloaking techniques to avoid detection, such as rapidly generating new wallet addresses and utilizing specific privacy tools. Elliptic developed proprietary analytics to identify Garantex-controlled wallets, revealing that transactions were primarily conducted in the stablecoin USDT issued on the Tron blockchain.
⚖️ The U.S. Department of Justice (DOJ) referenced Elliptic’s intelligence in its indictment, which emphasized Garantex’s involvement in supporting Russian oligarchs and illicit actors. This takedown comes in the wake of recent events like the $1.4 billion Bybit theft, highlighting the role of rogue exchanges in global crime financing.
🔗 Elliptic pointed out the ongoing technological arms race between bad actors and compliance firms, noting that other sanctioned entities are now adopting Garantex’s tactics. The company asserted that its tools remain integrated into crypto businesses’ compliance programs to detect illicit transactions. This announcement follows Tether's freezing of millions of USDT held on Garantex, the exchange's cessation of operations, and the U.S. government's seizure of its website.
