Garantex reemerges as Grinex despite sanctions

Garantex, a Russian cryptocurrency exchange sanctioned for facilitating money laundering and illicit transactions, has reportedly rebranded as Grinex after its shutdown.

According to Global Ledger, a Swiss blockchain analytics firm, Garantex operators have shifted millions in ruble-backed stablecoins to Grinex, which is described as its "full-fledged successor".

The investigation found that Garantex laundered over $60 million in A7A5 stablecoins and transferred them to Grinex, using techniques such as burning and minting to obscure the origin of the funds.

Global Ledger noted that Grinex's transaction patterns and behaviors are consistent with those of Garantex, further solidifying their connection.

"We can confidently state that Grinex and Garantex are directly connected both onchain and offchain," Global Ledger stated.

This connection is supported by onchain data showing the systematic transfer of liquidity and the involvement of addresses previously associated with Garantex.

Garantex was initially sanctioned by the U.S. Office of Foreign Assets Control (OFAC) in April 2022 for enabling money laundering illicitly obtained from ransomware attacks and darknet markets.

Despite these sanctions, Garantex continued to operate until its recent shutdown by international authorities, who seized its domains and froze over $26 million in illicit funds.

The rebranding as Grinex highlights the challenges faced by regulators in permanently disrupting illicit cryptocurrency operations.

This development underscores the need for continued vigilance and cooperation between public and private entities to combat transnational cybercrime in the crypto space.

By March 14, Grinex had already processed nearly $30 million worth of transactions, with its monthly trade volume exceeding $68 million, according to CoinMarketRating.

The rapid resurgence of Garantex under a new name demonstrates the resilience of illicit actors in the cryptocurrency sector and the ongoing need for effective regulatory oversight.