Garantex uses offshore platforms to evade sanctions

Russian cryptocurrency exchange Garantex continues to flourish in the shadows, relying on offshore financial hubs and other platforms to transfer client funds while evading Western sanctions, according to a new report from Transparency International Russia. Read the story:

The sanctioned cryptocurrency exchange Garantex continues to operate, relying on Telegram-based crossborder payment systems and offshore banks. The exchange, shut down by the Secret Service in March, helped move money for a Russian ransomware-as-a-service operation and one of the world’s largest darknet marketplaces, according to OFAC. It also permitted a notorious crypto launderer to transfer money across international borders for Russian elites. New from me on Transparency International Russia's report into two key nodes in the exchange's infrastructure, with special thanks to the report's author Kristine Bagdasarian: https://lnkd.in/g_-5Pjjr

Discover how a vast network of cryptocurrency wallets linked to Russian state entities managed to move over $8 billion, evading Western sanctions. Unveiled by blockchain analytics firm Elliptic, this operation utilized stablecoins, particularly Tether's USDT, to sustain international trade flows despite heavy sanctions. What strategies did these entities employ to maintain their financial operations, and what challenges did they face with centralized crypto controls? Learn more about the sophisticated tactics and the shift towards a new ruble-anchored stablecoin in our latest analysis. Stay informed on how geopolitical strategies are reshaping the landscape of international finance and cryptocurrency.

The organizers of Russia’s cryptocurrency payment system — including banker Ilan Shor, known for embezzling funds from Moldova — have learned to rapidly recover from U.S. sanctions and almost instantly resume cross-border operations, according to an analysis by the Financial Times. https://lnkd.in/e6qCCneV

A new report by Transparency International Russia details how Garantex, a sanctioned crypto exchange, has morphed into a decentralized money laundering system supported by two entities that have evaded scrutiny from global regulators and researchers. https://lnkd.in/eagnTj_s

OFAC sanctioned an Iranian shadow banking network moving $600M+, incl. $100M in crypto tied to oil sales (2023–2025), benefitting IRGC-QF and Iran’s defense ministry. Blockchain transparency helps expose these schemes.

With remote hiring now standard across many industries, DPRK IT worker infiltration is a highly prevalent risk faced by many companies.

As stablecoin usage grows in successive waves, market participants and compliance teams should remain vigilant to the risks of bad actors misusing these assets for unlawful activities.

Countering sanctions evasion through tighter crypto regulation is now a top priority, and European countries are moving fast to try and close the gaps. In recent years, reports have flagged how illicit actors are using crypto to circumvent sanctions, with payments flowing through obscure digital routes. (The FT recently spotlighted cases of Russia directing “saboteur payments” in crypto across Europe.) At the same time, certain regimes are taking a stronger approach. Poland has deployed Bill 1424, which takes the EU’s MiCA framework and layers on much stricter national rules. Some highlights: - Full licensing & supervision under Poland’s KNF - Fines up to PLN 10 million (~$2.5 million) and possible imprisonment - Power to block domains linked to illicit crypto activity Read more in the CCN.com article below. For those of us working in digital asset risk, compliance and tracing, we must evolve just as fast. New techniques to skirt sanctions are emerging constantly and investigators, analysts, and lawyers need to stay a step ahead. If you’re navigating crypto investigations or advising clients on sanctions risk, let’s connect and share insights.

The #A7A5 network has introduced a controversial method to bypass #CryptoSanctions through a process known as #TokenDestruction. When the U.S. sanctioned the #GrinexExchange, administrators executed the #destroyBlackFunds command to erase $405M in restricted tokens. These funds were then reborn in a new wallet — a full #TokenReset rather than a simple transfer — effectively breaking any traceable link to the sanctioned source. This #BlockchainMechanism allowed the recreated wallet TNpJj to process over $6.1B since inception, highlighting the growing tension between #DeFiInnovation and #CryptoRegulation. The move underscores how #SmartContractSecurity, #CryptoCompliance, and #BlockchainForensics are becoming critical in today’s digital asset landscape. #A7A5Network #CryptoEvasion #Tokenomics #DeFiSecurity #DigitalAssets #CryptoNews