Key Takeaways
- The European Union sanctioned Garantex on February 26 as part of its latest package of economic measures targeting Russia
- Garantex has vowed to fight the restrictions
Tether, the issuer of the world’s largest stablecoin, USDT, has frozen $27 million in assets linked to the Russian cryptocurrency exchange Garantex, which had been sanctioned by the European Union. This move has forced Garantex to suspend operations, including withdrawals, as it grapples with the financial restrictions imposed on it.
The exchange confirmed the freeze on March 6 through an announcement on its Telegram channel, stating, “Tether has entered the war against the Russian crypto market and blocked our wallets worth more than 2.5 billion rubles [$27 million].” The platform also warned that this action could put other Russian-held USDT assets at risk, adding, “We will fight, and we will not give up.”
The European Union sanctioned Garantex on February 26 as part of its latest package of economic measures targeting Russia over the war in Ukraine. The EU cited the exchange’s links to Russian banks already under sanctions, making this the first time the bloc has directly penalized a Russian crypto exchange.
This is not the first time Garantex has faced international restrictions. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned the exchange in April 2022, alleging it had facilitated illicit transactions.
According to OFAC, the exchange processed payments linked to ransomware groups and darknet markets, including transactions associated with the now-defunct Hydra marketplace and the Conti ransomware gang. Despite these sanctions, Garantex continued to operate, relying on Russian financial networks.
Data from CoinPaprika suggests that Garantex’s daily trading volume surged significantly despite sanctions. The figures indicate an increase from roughly $11 million in March 2022 to over $121 million in March 2025. However, its trading activity remains relatively small compared to major global exchanges like Binance, which sees over $23 billion in daily transactions.
The impact of Tether’s action extends beyond Garantex, raising concerns about the broader Russian crypto market. Lawmakers in Russia have reacted strongly to the freeze.
Anton Gorelkin, deputy head of the Russian parliament’s information policy committee, suggested that this may be the start of further Western actions against Russian crypto firms. “It is for sure not the last case when Western countries put pressure on the crypto industry,” he stated, though he also argued that blocking Russia entirely from digital asset markets would be impossible.
Tether’s USDT stablecoin is widely used in global crypto trading, with a market capitalization exceeding $140 billion.
Garantex has vowed to fight the restrictions, but without access to USDT, its ability to operate remains uncertain.
