Garantex Migrates Operations to Grinex Ahead of 2025 Sanctions Enforcement

Cryptocurrency exchange Garantex Europe, which faced U.S. sanctions in March 2025, had reportedly prepared contingency plans in advance of enforcement actions, according to blockchain intelligence firm TRM Labs [1]. These measures allowed the platform to migrate infrastructure, client funds, and operations to successor entities such as Grinex and potentially other platforms like Meer, as early as December 2024—months before any official takedown [1]. Kyrgyz government records, as cited by TRM Labs, show that Grinex was incorporated well ahead of the enforcement, indicating strategic preparation to continue operations under a new legal structure [1].

Garantex had previously been sanctioned by the U.S. Treasury in 2022 for its role in facilitating illicit financial activity, including ransomware-related transactions, darknet market operations, and the laundering of other criminal proceeds. Between 2019 and March 2025, it is estimated to have processed at least $96 billion in cryptocurrency transactions, with a significant portion involving illicit flows [1]. Despite the March 2025 enforcement action—led by U.S., German, and Finnish authorities—TRM Labs noted that the takedown did not halt Garantex's operations; instead, it triggered the prearranged contingency plan, with new platforms quickly stepping in to fill the void [1].

The transition from Garantex to Grinex involved the use of a Russian ruble-pegged stablecoin, A7A5, which was introduced to facilitate the movement of frozen customer funds and maintain value transfer channels. Garantex-linked wallets began moving funds into A7A5 as early as January 2025, weeks before the enforcement, according to TRM Labs [1]. This move underscored the operators' anticipation of regulatory action and their intent to establish a sanctions-resistant financial infrastructure [1].

Meer, another cryptocurrency exchange that began trading A7A5 and had a similar interface to Garantex and Grinex, was also registered around the same time. This overlap in timing suggests coordinated development among the platforms, with Meer potentially serving as an additional route for Garantex’s illicit transaction flows following the March 2025 enforcement [1]. The rapid shift in activity and the apparent continuity of operations highlight the challenges regulators face in dismantling decentralized or rapidly relocatable crypto platforms [1].

TRM Labs emphasized that the Garantex-Grinex-A7A5 network represents a critical case study in how illicit actors exploit fiat-pegged tokens with opaque governance structures. These tokens, often presented as routine settlement instruments, can be repurposed into core components of sanctions evasion strategies when linked to sanctioned institutions or opaque corporate networks [1]. The case reinforces the need for enhanced due diligence and regulatory scrutiny of stablecoins and their underlying governance models.

The enforcement action against Garantex underscores the growing complexity of cryptocurrency regulation, particularly in a landscape where platforms can rapidly adapt to external pressures. While cross-border cooperation has enabled significant takedowns, the premeditated contingency planning by crypto operators highlights the limitations of such actions in fully disrupting illicit networks. As regulators continue to refine their strategies, the Garantex case demonstrates the urgent need for more proactive, coordinated, and legally robust enforcement mechanisms to address the evolving tactics of illicit crypto actors [1].

Source:

[1] Sanctioned Exchange Garantex Previously Had a Contingency Plan Ahead of Enforcement Actions

https://cointelegraph.com/news/sanctioned-exchange-garantex-previously-had-a-contingency-plan-ahead-of-enforcement-actions