US Imposes Blacklist Sanctions on Ruble Stablecoin A7A5 and Garantex’s Crypto Network
On August 15, it was reported that the United States has imposed blacklist sanctions on the ruble stablecoin A7A5 and the now-defunct Russian crypto exchange Garantex’s crypto network. Garantex was previously shut down after processing over $100 million in illicit transactions, but subsequently rebranded as Grinex to continue operations. The stablecoin A7A5, backed by Russian institutions, is used to circumvent international sanctions and has a daily trading volume of $1 billion. In cooperation with German and Finnish police, the US seized Garantex’s website domain and froze $26 million in assets in March. Key Garantex executives Sergey Mendeleev, Aleksandr Mira Serda, and Pavel Karavatsky, as well as Mendeleev’s companies InDeFi Bank and Exved, have also been added to the sanctions list for assisting sanctioned Russian businesses in conducting transactions through crypto channels. According to a report by blockchain analytics firm Elliptic, the ruble stablecoin A7A5 underpins a “sanctions evasion scheme,” enabling Russian companies to bypass the traditional banking system for cross-border settlements.
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