Charles Esther
Cryptocurrency exchange Garantex Europe, recently sanctioned for the second time by the US Treasury’s Office of Foreign Assets Control (OFAC), may already have measures in place to bypass the impact of these sanctions, according to blockchain intelligence firm TRM Labs.
The sanctions also targeted Garantex’s successor platform, Grinex, as part of ongoing enforcement against crypto-facilitated illicit activity.
Pre-Planning and Contingency Measures
TRM Labs reported that exchanges like Garantex often prepare contingency strategies well ahead of anticipated enforcement measures.
These plans allow them to rapidly transfer clients, infrastructure, and funds to successor platforms, minimizing the effectiveness of sanctions.
Garantex’s Role in Illicit Transactions
Garantex has been identified as a major channel for laundering ransomware proceeds, darknet market operations, and other illegal cryptocurrency flows.
OFAC estimates that the exchange processed billions of dollars in crypto transactions between 2019 and March 2025.
Successor Platforms Established Early
Despite the March 2025 takedown of Garantex’s infrastructure by US, German, and Finnish authorities, TRM Labs discovered that Grinex was incorporated in December 2024, months before the seizure.
Funds from Garantex were shifted into the Russian ruble-pegged stablecoin A7A5 as early as January 2025, demonstrating foreknowledge of enforcement actions and intent to maintain operations through alternative channels.
Continuation of Illicit Activity
Garantex was estimated to have handled over $100 million in illegal transactions before its initial 2022 OFAC sanctions, and hundreds of millions more afterward.
TRM Labs noted that the March 2025 multinational takedown did not stop these operations, as leadership quickly activated pre-existing contingency measures.
Telegram channels associated with the exchange began promoting Grinex as a replacement platform, maintaining continuity for users.
Meer Exchange Possibly Another Backup
Another platform, Meer, also listed the A7A5 token and features similar trading interfaces to Garantex and Grinex.
Registered in December 2024, Meer’s activity following the March 2025 enforcement suggests it served as an additional channel for sustaining illicit fund flows.
A7A5 Token Central to Sanctions Evasion
The A7A5 stablecoin played a key role in facilitating movement and recovery of frozen customer funds during the transition from Garantex to Grinex.
TRM Labs described the Garantex–Grinex–A7A5 network as a “critical case study” for monitoring migration of illicit activity in the crypto space.
Implications for Regulatory Oversight
The case illustrates how fiat-pegged tokens, often marketed as routine settlement tools, can be repurposed to evade sanctions when linked to opaque corporate networks and sanctioned exchanges.
TRM Labs emphasized the need for enhanced due diligence on such tokens and associated platforms to prevent continued financial crime.
