Russia’s Secret Service Just Seized a Russian Crypto Exchange: Hyperbitcoinization Race is On?

Garantex, the Russian crypto exchange with alleged ties to shady banks and criminal networks, is gone—its website yanked offline by the Russian Secret Service in coordination with global enforcement.

This takedown, years in the making, wasn’t subtle. US and European regulators have been circling for ages, using Garantex as a poster child for what happens to unregulated platforms that stray too close to the fire. The message? The noose is tightening for crypto outlaws.

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A Coordinated Crackdown On Russian Crypto Exchange Garantex

The Garantex site is dead, replaced by a blunt seizure notice from the US and Russian Secret Service. Moreover, spokesperson Nate Herring confirmed the takedown as part of an “ongoing investigation,” though details remain under wraps.

🚨BREAKING 🚨

All Russian Wallets With $USDT Are Under Danger!

Earlier this morning, Garantex Exchange anounced that @Tether_to had frozen ₽2.5B(RUB) worth of $USDT on their wallets.

And just recently, their website https://t.co/IFVH21W9dV has been taken down.

It is reported… pic.twitter.com/B0E4drbl8P

— enCRYPT0 (@0xEncrypto) March 6, 2025

This action follows Tether’s controversial decision to freeze $28 million in USDT associated with Garantex on March 6. Importantly, the stablecoin issuer’s participation demonstrates the growing collaborative approach between law enforcement agencies and major crypto organizations to combat illicit activities within the digital asset ecosystem.

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Tether Blockade and Garantex’s Response

Reacting to the situation, Garantex issued a statement via its Telegram channel accusing Tether and reiterating its determination to resolve the issue.

“We are fighting and will not give up,” the exchange stated, adding that it had “temporarily suspended all services, including cryptocurrency withdrawals while our entire team solves this problem.”

The frozen assets reportedly amount to over 2.5 billion rubles (approximately $25 million), further complicating the situation for the exchange, which has been under scrutiny for years.

Garantex has been a thorn in the side of Western authorities for years. Sanctioned in April 2022 by the U.S. Treasury’s OFAC—with backing from the FBI and German authorities—the exchange was accused of funneling over $100 million to shady operators.

Among the accusations was nearly $6 million linked to the notorious Conti ransomware gang and $2.6 million flowing from Hydra, the now-dead darknet bazaar.

Implications for the Crypto Industry

The seizure of Garantex’s assets and takedown of its site is just the latest salvo in the fight over crypto’s soul. By alleging ties to sanctioned Russian entities, U.S. authorities are folding crypto into a broader narrative of geopolitical enforcement.

This also raises the question—are U.S. and Russian officials cracking down on crypto or quietly hoarding it in a digital arms race?

The takedown of Garantex’s website ramps up the fight against crypto platforms accused of fueling illicit transactions. With international agencies banding together, the message is clear—judgment day is coming for unregulated exchanges.

The fallout could reshape crypto’s future. Tether’s role in freezing assets points to an industry walking a fine line between compliance and liberty. Regulators call it accountability; skeptics call it the slow death of centralization.

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