The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) re-designated the cryptocurrency exchange Garantex Europe OU (Garantex) and designated its successor exchange, Grinex, alongside three Garantex executives and six associated companies in Russia and the Kyrgyz Republic, citing sanctions evasion and support for cyber-enabled crime. OFAC said Garantex has processed over USD 100 million in transactions linked to illicit activity since 2019, including activity connected to ransomware actors and other cybercriminals. Garantex was previously designated in April 2022 under Executive Order 14024; OFAC has now also designated Garantex under the cyber-related Executive Order 13694, as amended by Executive Orders 14144 and 14306, and applied the same authority to Grinex and the broader network. OFAC described Grinex as having been created by Garantex employees following U.S. Secret Service-led action on 6 March 2025 that seized Garantex’s web domain and froze over USD 26 million in cryptocurrency, with Grinex subsequently facilitating billions of dollars in transactions. The designations cover executives Sergey Mendeleev, Aleksandr Mira Serda and Pavel Karavatsky, and related firms A7, A71, A7 Agent, Old Vector (linked to the ruble-backed A7A5 token), Independent Decentralized Finance Smartbank and Ecosystem (InDeFi Bank) and Exved; the release also referenced indictments unsealed on 7 March 2025 and U.S. State Department reward offers of up to USD 5 million for information leading to Mira Serda’s arrest and/or conviction and up to USD 1 million for other key leaders. As a result, property and interests in property of the designated persons within U.S. jurisdiction or control are blocked and must be reported to OFAC, and the 50 percent ownership rule applies to entities owned by blocked persons. OFAC also highlighted that U.S.-nexus transactions involving the designated parties are generally prohibited absent authorization, and that certain dealings by financial institutions and other persons may create sanctions exposure or trigger enforcement action.
U.S. Department of the Treasury 2025-08-14
U.S. Department of the Treasury re-designates Garantex and designates Grinex and affiliated network tied to over USD 100 million in illicit crypto transactions
The U.S. Treasury’s OFAC re-designated cryptocurrency exchange Garantex Europe OU and designated its successor, Grinex, along with three executives and six companies for sanctions evasion and cybercrime support. OFAC cited over USD 100 million in illicit transactions since 2019 and noted Grinex's creation following U.S. Secret Service actions against Garantex. The designations block property within U.S. jurisdiction and prohibit U.S.-nexus transactions with the designated parties without authorization.