The U.S. Secret Service has seized the domains of Russian crypto exchange Garantex and frozen over $26 million, claiming the funds were used for money laundering. At the same time, the U.S. Department of Justice filed charges against the platform’s executives — Alexey Beschokov and Alexander Mira Serde.
Garantex, founded in 2019 in Moscow, was one of the largest crypto exchanges in Russia, playing a significant role in the local crypto space. It allowed users to exchange rubles for cryptocurrency and circumvent sanctions. However, back in 2022, the U.S. Department of the Treasury imposed sanctions on the platform, stating that over $100 million in transactions were tied to darknet markets and cybercriminal groups, including Russia-based Conti and Hydra Market. Despite this, the exchange continued operating, making it a prime target for U.S. law enforcement.
How will this affect the crypto market in Russia?
1. Growth of grey schemes and migration to anonymous platforms
Following the Garantex shutdown, users will look for alternative ways to exchange crypto. This could boost the popularity of decentralized exchanges (DEXs) and P2P platforms, which lack centralized control and are harder to sanction. Anonymous crypto wallets may also see increased use, complicating transaction monitoring.
2. Hit to liquidity and rising fees
Garantex was a key liquidity provider in the Russian market. Its removal may cause wider spreads (the difference between buy and sell prices) and increased fees on other exchanges. Users will face higher costs when exchanging or transferring crypto.
3. Increased scrutiny of other Russian exchanges
With Garantex taken down, other Russian crypto platforms may come under fire. Regulators both inside and outside the country may tighten oversight, creating additional risks for users of these platforms.
4. Government crackdown on the crypto market
Russian authorities may use this incident as a pretext to ramp up control over the crypto sector. This could lead to stricter user identification requirements, transaction limits, and increased financial regulatory checks.
5.Rising popularity of international exchanges
As local options shrink, some users may turn to global platforms like Binance, OKX, or Bybit, using VPNs and other bypass tools. However, accounts on these exchanges may also be at risk due to ongoing sanctions pressure.
What’s next?
The seizure of Garantex domains marks another blow to Russia’s crypto ecosystem. Users will search for alternatives, driving growth in anonymous transactions, grey market schemes, and challenges in crypto exchanges. In response, authorities may tighten regulations, but fully stopping digital asset use in Russia is unlikely.
Stay alert and choose your platforms for crypto operations carefully.
