Cryptocurrency exchange Garantex Europe, which was sanctioned on Thursday, may already have a contingency plan allowing it to skirt the impact of the US actions, blockchain intelligence firm TRM Labs said.
On Thursday, the US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Garantex a second time, along with its successor, Grinex.
However, TRM Labs said in a report on Thursday that the sanctions may be ineffective, as entities like Garantex “appear to prepare contingency plans well in advance of anticipated enforcement measures,” which allow them to quickly migrate clients, infrastructure and funds to successor platforms.
Garantex was a key conduit used by ransomware gangs for laundering ill-gotten gains, darknet market transactions and the movement of other illicit funds. OFAC estimates it processed billions in crypto transactions from 2019 to March 2025.
Successors lined up months in advance
US, German and Finnish authorities took down Garantex’s infrastructure in March, but according to TRM Labs, Kyrgyz government records show Grinex was incorporated in December 2024, well before the seizure, and was ready to take up the mantle.
Wallets connected to Garantex began moving funds into Russian ruble pegged stablecoin A7A5 in January 2025, weeks before the takedown, “underscoring foreknowledge of impending enforcement and the intent to establish a sanctions-resistant value-transfer channel,” the blockchain intelligence firm said.
Garantex was estimated to have processed more than $100 million in illicit transactions until its initial sanctions by OFAC in 2022, and hundreds of millions of dollars more following the designation.
“The March 2025 multinational takedown did not halt these activities. Instead, Garantex’s leadership quickly activated a contingency plan that appears to have been in place for months,” TRM Labs said.
“In the days following the Garantex disruption, Telegram channels linked to the exchange began promoting Grinex as a new platform with familiar functionality.”
Meer exchange possibly another backup plan
Another crypto exchange known as Meer was among the first to list A7A5 and has similar features and trading interfaces to Garantex and Grinex, according to TRM Labs.
The site was also registered in December 2024, around the same time as both Grinex and A7A5.
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