U.S. Treasury Sanctions A7A5 Crypto Network for Sanctions Evasion and Illicit Transactions

The U.S. Treasury has intensified its campaign against Russian-linked cryptocurrency networks, targeting the infrastructure supporting the ruble-backed stablecoin A7A5 and its affiliated platforms. In a coordinated action led by the Office of Foreign Assets Control (OFAC), the department imposed sanctions on a network of exchanges, companies, and individuals involved in facilitating illicit transactions and sanctions evasion [3].

Central to the enforcement are entities including the Kyrgyzstani firm Old Vector, Russian company A7 LLC, and the now-shuttered exchange Garantex. Old Vector is accused of issuing the A7A5 stablecoin, which has been used to facilitate cross-border transactions outside the traditional banking system. A7 LLC and its subsidiaries, along with the successor platform Grinex, reportedly inherited Garantex’s user base and liquidity, allowing the network to continue operations under a new brand [1].

The U.S. alleges that the A7A5 network, supported by deposits at the sanctioned Russian bank Promsvyazbank, has enabled over $51 billion in transactions across the Tron and Ethereum blockchains. This represents a deliberate effort to bypass Western economic restrictions and maintain a parallel financial infrastructure. Among the sanctioned individuals are key executives of Garantex, including Sergey Mendeleev, Aleksandr Mira Serda, and Pavel Karavatsky, all of whom are implicated in facilitating transactions for sanctioned Russian entities [1].

Enforcement measures include the seizure of domains, assets, and liquidity channels. Over $26 million in assets has been immobilized, and $28 million in USDT has been frozen, effectively cutting off the A7A5 network from the broader crypto ecosystem. These actions align with prior sanctions on other exchanges, such as Suex and Chatex, both of which were also tied to sanctions evasion [2].

The A7A5 network has also been leveraged by Russian cybercriminal groups, including Ryuk, Conti, and LockBit, to launder illicit proceeds. The platform is estimated to have facilitated more than $2.3 million in ransomware-related transactions alone [4]. OFAC has emphasized the need for greater blockchain transparency to trace and disrupt such flows, highlighting the growing regulatory focus on stablecoins as tools for sanctions circumvention [2].

The broader implications of this action extend beyond Russia. The case underscores the increasing use of cryptocurrency in enabling financial evasion and the necessity for regulators to remain vigilant against evolving digital infrastructure. It also reflects a strategic shift in U.S. enforcement, expanding from traditional banking systems to decentralized and digital alternatives [3].

This latest move by the U.S. Treasury seeks to isolate the A7A5 network from the international financial system, reinforcing the U.S. commitment to upholding global regulatory compliance and preventing the misuse of digital assets for illicit activities.

Sources:

[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/

[4] Garantex, Grinex, and the A7A5 Token: A Deep Dive into Sanctions Evasion Networks

https://www.trmlabs.com/resources/blog/garantex-grinex-and-the-a7a5-token-a-deep-dive-into-sanctions-evasion-networks