U.S. Sanctions Russian Ruble-Backed Stablecoin Network A7A5 and Grinex

The U.S. Treasury has imposed sanctions on a network of companies, individuals, and cryptocurrency platforms associated with the Russian ruble-backed stablecoin A7A5 and its affiliated exchanges, including Garantex and its successor, Grinex [1]. The Office of Foreign Assets Control (OFAC) cited the network for facilitating sanctions evasion and enabling cybercrime through the creation and distribution of A7A5, a stablecoin operating on the Tron and Ethereum blockchains and backed by ruble deposits at the sanctioned Russian bank Promsvyazbank [2]. A7A5 has processed over $51.17 billion in trading volume by the end of July 2025, primarily through platforms linked to Russia, including Grinex, Bitpapa, and Meer [3].

The sanctioned network includes the Kyrgyzstani firm Old Vector, which issued A7A5, along with Russian company A7 LLC, its executives, and related financial infrastructure. These entities are accused of creating a closed ecosystem that allows Russian and affiliated actors to conduct cross-border transactions while circumventing Western financial restrictions. OFAC’s action is part of a broader strategy to target the illicit financial infrastructure Russia has been building in response to global sanctions. The takedown of Garantex in March 2025 led to the emergence of Grinex, which inherited Garantex’s liquidity and user base, indicating a deliberate shift to sustain operations under a new platform [1].

Key individuals involved include Sergey Mendeleev, Aleksandr Mira Serda, and Pavel Karavatsky—founders and executives of Garantex—who have been sanctioned for enabling cybercrime and sanctions evasion. Aleksej Besciokov, another alleged operator of Garantex, was arrested, while Serda remains at large with a $5 million reward for his capture [3]. The enforcement measures include the seizure of domains, assets, and liquidity channels, with $28 million in USDT frozen and $26 million seized. These actions have disrupted the flow of funds between the ruble-backed stablecoin and other major stablecoins, further isolating the network from the broader crypto market [2].

The U.S. Treasury’s enforcement is consistent with past actions against exchanges like Suex and Chatex, both of which were previously sanctioned and either shut down or migrated to successor platforms [3]. Experts from Crystal Intelligence have emphasized the importance of such sanctions in disrupting illicit transactions and maintaining order in cross-border crypto rails. The transparency of blockchain transactions has enabled investigators to trace illicit flows, reinforcing the need for regulators to remain vigilant over evolving crypto ecosystems [2].

The rise of A7A5 also aligns with Russian legislative efforts to promote cryptocurrency as an alternative to traditional financial systems. The sequence of the stablecoin’s launch, the shutdown of Garantex, and the emergence of Grinex suggests a systemic attempt to build parallel financial infrastructure outside the reach of global sanctions. This case highlights the growing role of stablecoins in enabling illicit financial activity and the increasing focus of U.S. regulators on cryptocurrency as a tool for sanctions evasion. The broader implications of this enforcement extend beyond Russia, signaling a heightened regulatory stance against similar networks globally [3].

Source:

[1] OFAC Sanctions Crypto Network Behind Ruble-Backed Stablecoin And Shuttered Exchange Garantex

https://www.coindesk.com/policy/2025/08/14/ofac-sanctions-crypto-network-behind-ruble-backed-stablecoin-and-shuttered-exchange-garantex

[2] OFAC targets use of stablecoins for Russian sanctions evasion

https://www.elliptic.co/blog/ofac-targets-use-of-stablecoins-for-russian-sanctions-evasion

[3] How A7A5 and Grinex Enable The Russian Crypto Economy

https://www.chainalysis.com/blog/a7a5-grinex-russian-crypto-economy-ofac-sanctions-august-2025/