Grinex and Regulatory Scrutiny
A cryptocurrency trading platform known as Grinex is suspected of taking over operations from the recently sanctioned Russian exchange Garantex, having observed significant fund movements exceeding $1.66 billion through various exchanges. This activity surfaced despite concerns raised by Global Ledger, a blockchain analytics firm that flagged potential risks associated with Grinex. Following regulatory actions in March that dismantled Garantex’s infrastructure by authorities from the United States, Germany, and Finland, Global Ledger indicated that Grinex has been under scrutiny for its financial activities.
Escalating Fund Movements
As of May, estimates highlighted that several cryptocurrency exchanges were exposed to approximately $1 billion in funds related to Grinex. Global Ledger’s research continues to reveal escalating flows, now calculating that Grinex has facilitated transactions worth $2.41 billion involving various cryptocurrency services and wallets, with $1.66 billion specifically transiting through 180 virtual asset service providers (VASPs). Yury Serov, head of research at Global Ledger, commented on the alarming growth of these transactions, emphasizing their increasing frequency.
High-Risk Transactions and Compliance Issues
Notably, Grinex has been associated with high-risk transactions particularly on the Tron network, with a staggering figure of $649 billion in stablecoin transactions flagged in 2024 involving risky addresses—over 70% of which were linked to USDt on Tron. This raises questions about Grinex’s ongoing operations, particularly against a background where compliance regulations are tightening.
Reactions from the Crypto Community
Despite a lack of disclosure regarding specific exchanges involved in these transactions, Serov noted that some platforms have acknowledged Global Ledger’s warnings about the suspicious activity. Cointelegraph sought responses from several leading crypto exchanges to gauge any awareness of fund flows stemming from Grinex. Only Binance provided feedback, confirming its efforts to monitor and mitigate any exposure to sanctioned entities and individuals, highlighting that while direct deposits can still occur, they actively block related transactions.
The Fallout from Garantex’s Dismantling
The emergence of Grinex follows a significant crackdown on Garantex, which ranked as a prominent player in the crypto sector, processing approximately $96 billion in transactions since April 2019. Following the dismantling of its infrastructure, it was reported that Garantex had facilitated a transition of over $60 million in Russian ruble-backed stablecoins to Grinex, further corroborated by claims from Grinex’s management of ongoing interactions with former Garantex clients.
The Evolving Regulatory Landscape
The regulatory landscape for cryptocurrencies has been evolving, particularly as assets become increasingly appealing to institutional investors and governments. Yet, as systems advance, illicit actors often exploit regulatory gaps, as seen with some transactions linking Grinex to EU-licensed exchanges that are navigating complex compliance requirements. In response to these challenges, certain platforms have begun to withdraw USDt trading pairs to align with the European Union’s Markets in Crypto-Assets (MiCA) framework, which enforces stringent obligations on stablecoin issuers.
Continued Compliance Challenges
While some platforms have faced closures due to their illicit activities, experts warn that businesses frequently rebrand to persist. The recent dismantling of eXch, a no-Know-Your-Customer exchange by German authorities, spotlighted continued suspicious fund flows, suggesting that operations may continue covertly under new identities.
