U.S. Treasury Sanctions Crypto Network Linked to Garantex and A7A5 Token
The U.S. Treasury's Office of Foreign Assets Control (OFAC) has sanctioned a network linked to the Russian crypto exchange Garantex and the ruble-backed stablecoin A7A5, for aiding Russia in evading international sanctions.
- Garantex processed over $100 million in transactions tied to ransomware and darknet activities.
- In March, U.S. officials seized its web domain and froze $26 million, leading to the creation of Grinex as its successor.
- Grinex allegedly transferred funds from Garantex and utilized the A7A5 token to regain access post-seizures.
- A7A5, issued by Old Vector and backed by Promsvyazbank and Ilan Shor, facilitates cross-border settlements for Russian users.
- Old Vector and associated subsidiaries were blocked from the U.S. financial system, prohibiting U.S. interactions.
- Key executives from Garantex and their firms have also been sanctioned.
OFAC's actions aimed to disrupt digital asset channels used for ransomware and sanctions evasion. The A7A5 token is reportedly processing around $1 billion daily and has a cumulative transaction volume exceeding $51 billion, indicating its role in bypassing sanctions against Russia.