- Tether froze $27M USDT, forcing Russian exchange Garantex to halt all trading and withdrawals after EU sanctions.
- Garantex’s trading volume surged 1,000% in 3 years, despite US and EU sanctions targeting Russian crypto activities.
- Regulators intensify scrutiny, signaling stricter enforcement against sanctioned crypto platforms linked to Russian financial entities.
Tether has locked $27 million in its stablecoin USDT associated with the Russian cryptocurrency exchange Garantex. This move compelled the platform to halt all trading and withdrawal operations. Garantex officially announced the freeze on March 6, revealing that Tether had frozen wallets containing over 2.5 billion rubles ($27 million).
After the asset freeze, the exchange revealed a temporary closure, putting its website into maintenance mode. The event follows the European Union imposing sanctions on Garantex on February 26 as a part of its recent set of measures concerning Russia’s continuing conflict with Ukraine.
Sanctions Affect the Cryptocurrency Market in Russia
Garantex alerted its users that all USDT held in Russian wallets might be in danger. The platform announced its aim to contest the limitations, though it did not detail how it intends to react. The EU announced that its latest sanctions package was the first to feature a cryptocurrency exchange based in Russia. The bloc explained its choice by highlighting Garantex’s strong connections to Russian financial institutions that have been sanctioned before.
Regulatory measures against Garantex are not unprecedented. The platform was sanctioned by the US Department of Treasury’s Office of Foreign Assets Control (OFAC) in April 2022. Notwithstanding these limitations, the exchange persisted in its operations, with reports indicating a notable rise in its trading volumes during the last three years.
Garantex’s Trading Volumes Increased Despite Limitations
Garantex was established in 2019 and first registered in Estonia, later broadening its operations to Moscow and St. Petersburg. According to sources, the site has emerged as a prominent participant in Russia’s bitcoin industry, operating from the same locations as other sanctioned exchanges.
According to CoinPaprika, Garantex’s daily trading volume rose from $11 million in March 2022 to more than $121.6 million in March 2025. Even with its expansion, the exchange remains missing from major global aggregators such as CoinGecko and CoinMarketCap.
Tether’s decision to ban assets related to Garantex highlights the increasing regulatory scrutiny of Russian cryptocurrency platforms. The most recent sanctions by the EU represent a major advancement in focusing on digital assets associated with Russian financial entities.
Although Garantex has committed to opposing the limitations, the lasting effect on Russia’s cryptocurrency market is still unclear. Recent updates reveal that regulatory agencies persist in overseeing and taking action against platforms functioning under sanctions.
