US and UK Investigate $20 Billion in Crypto Transactions Violating Russian Sanctions
The US and UK governments have launched a joint investigation into crypto transactions worth over $20 billion that may have violated Russian sanctions, as reported by Bloomberg News on March 28.
These transactions, suspected of being routed through the Russia-based crypto exchange Garantex, aim to evade international sanctions and potentially fund military activities in Ukraine.
Sanction Evasion
The Moscow-based exchange allegedly processed these significant amounts using Tether’s stablecoin USDT despite sanctions imposed on it by both countries for its supposed role in financial crimes and facilitating illicit transactions within Russia.
Despite comprehensive sanctions against Russia, Western nations have encountered challenges in sealing off financial inflows into the country. Russia reportedly adopts various strategies to skirt these sanctions, complicating the West’s efforts to cut off financial support for Putin’s regime.
The US government has intensified its focus on crypto exchanges like Garantex to disrupt Russia’s financial channels. The $20 billion under scrutiny highlights the complex battle to implement financial sanctions effectively.
Tether’s Response
In a statement, Tether Limited expressed its commitment to adhering to compliance standards and its ongoing cooperation with law enforcement bodies. The company has taken measures to freeze assets linked to entities on the US sanctions list, aiding in the fight against illicit financial activities.
Garantex has remained silent in light of the investigation. Both the US Treasury and the UK’s counterparts have refrained from commenting on the ongoing investigation into the exchange.
Garantex was founded in Estonia in 2019 and later relocated most of its operations to Moscow following regulatory challenges and the revocation of its operating license.
