Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Tether Freezes $28 million USDT on Russian Exchange Garantex

Tether Freezes $28 million USDT on Russian Exchange Garantex

BeInCryptoBeInCrypto2025/03/06 07:10
By:Mohammad Shahid

Garantex says Tether froze $28 million in USDT, halting trades and intensifying US sanctions on Russia's digital trade.

Garantex, a Russian crypto exchange under US sanctions, accused Tether of attacking the Russian crypto market. 

According to the exchange’s Telegram announcement, Tether has frozen several USDT wallets on the exchange, which are worth over $28 million. 

USDT Holders in Russia are At Risk

Garantex stated that USDT stablecoins in user wallets are at risk. Several USDT funds held by users in the exchange have been frozen. To manage the situation, Garantex has temporarily halted all operations. 

Co-founder Sergey Mendeleev stated that this action disrupts Russia’s international trade carried out with digital assets. 

“We temporarily suspend the provision of all services, including cryptocurrency findings, for a while while we are solving this problem with the whole team. We fight and don’t give up!” Garantex wrote on Telegram. 

Further, he warned that the freeze creates difficulties for businesses and financial institutions that depend on crypto to settle international payments. 

Back in December, Russia’s Finance Minister confirmed that the country has been increasingly using Bitcoin and other cryptocurrencies for international trade amid sanctions. 

“While we discussed easing tensions and relaxing sanctions, we were deceived once again. Suddenly, the paradigm shifted: earlier, sanctions were merely glossed over, but now they block without trial or investigation. This is exactly the reality I have warned about for at least two years, yet neither the Central Bank nor the professional community listened,” — wrote Mendeleev.

Mendeleev stressed that the disruption affects Russia’s economic engagements on a broader scale. Western sanctions have forced digital currencies to play a vital role in international settlements. The current incident further complicates those processes. 

The exchange’s claim draws attention to mounting regulatory pressure and a growing conflict between US authorities and market players operating in Russian jurisdictions.

Garantex Sanction Explained

State Duma deputy Anton Gorelkin added his perspective on the incident. He pointed out that Tether’s decision reflects a broader trend of pressure applied by Western regulators on crypto infrastructure amid ongoing sanctions. 

Gorelkin highlighted that centralized stablecoins like USDT remain particularly exposed to outside control. Despite the blockade, he expressed confidence that it is impossible to completely shut down the Russian crypto market. 

Garantex first encountered regulatory challenges in April 2022. US authorities imposed sanctions following the intensification of the conflict between Russia and Ukraine

Officials charged the exchange with failing to comply with anti-money laundering and counter-terrorism financing rules. US agencies claimed that Garantex played a role in laundering over $100 million linked to hacker groups and dark web transactions.

In March of last year, law enforcement agencies from the US and UK began an investigation into Garantex. They reviewed crypto transactions totaling more than $20 billion made using USDT. 

This probe reflects the ongoing tensions between regulators and crypto operators in sanctioned environments.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Solana’s DeFi Growth Could Challenge Ethereum

Franklin Templeton highlights Solana’s rising DeFi activity, posing a challenge to Ethereum’s dominance in the sector.Ethereum’s Lead Faces New ChallengesThe Future of DeFi: Can Solana Surpass Ethereum?

Coinomedia2025/03/06 23:33

Best Meme Coin to Buy Today: BTFD Coin’s $6.26M Presale Surge, Moo Deng’s Tax-Free Trading, and Turbo’s AI Experiment

Looking for the best meme coin to buy today? BTFD Coin crosses $6.26M in presale, Moo Deng’s no-tax model attracts traders, and Turbo’s AI-powered vision gains momentum.BTFD Coin’s Staking Rewards Give Investors the EdgeTurbo’s AI-Generated Concept Keeps the Community IntriguedFinal Thoughts

Coinomedia2025/03/06 23:33

World Liberty Financial & SUI Unveil Strategic Token Reserve

World Liberty Financial partners with SUI to launch a Strategic SUI Reserve, enhancing liquidity and bridging traditional finance with blockchain technology.Why This Strategic Reserve MattersA Step Towards Mainstream Crypto Adoption

Coinomedia2025/03/06 23:33

SUI Surges 13.7% on World Liberty Financial Partnership

SUI price jumps 13.7% after announcing a strategic partnership with World Liberty Financial. Who's next to join forces?Expanding Blockchain Financial ServicesWhat’s Next?

Coinomedia2025/03/06 23:33