Overview of Garantex and Sanctions
The U.S. Treasury Department took action against Garantex, a Russian cryptocurrency exchange, in April 2022, accusing it of enabling cybercriminal activities by processing a staggering $96 billion in cryptocurrency over six years. Despite the sanctions imposed by the Office of Foreign Assets Control (OFAC), it has been reported that Garantex’s operators have continued to expand an intricate money laundering network that is allegedly used to circumvent Western sanctions, a situation detailed in a recent Transparency International Russia report.
Money Laundering Techniques
Crypto analytics firm Elliptic has traced various money laundering schemes back to Garantex, which employed a unique system of utilizing different cryptocurrency addresses for each transaction routed through multiple wallets. This complex approach allowed Garantex to persist in its operations despite being sanctioned. Additionally, in 2025, Tether froze assets linked to Garantex, and during police actions in March of that year, the exchange’s European operations were shut down.
Evolution of Garantex’s Operations
However, investigators have found that Garantex has not been extinguished; instead, it has reportedly evolved into new ventures focused on illicit financial activities. These include the establishment of Grinex, a new crypto platform, MKAN Coin, which provides financial consulting, and Exved, a specialized payment service. As per Transparency International, these new entities operate largely without interference from Russian authorities.
Key Figures and International Reach
The group behind these operations consists of key figures from Garantex, such as Sergey Mendeleev, Alexandr Mira Serda (who is wanted in the U.S.), and Pavel Karavatsky. Their newly formed network appears to span several countries, including the United Arab Emirates, Spain, and Brazil, complicating regulatory oversight from Western nations.
Use of Technology and Undercover Investigations
Central to the ongoing operations is Telegram, which Transparency International notes is employed extensively by the Garantex affiliates for registration, communication, and transactions. Exved has emerged as a particularly influential player, facilitating offshore transactions for Russian clients to move their funds abroad without leaving traces in domestic banks. The service appears to operate through an extensive network of agents and offshore accounts in locales like Dubai and Hong Kong.
In a series of undercover inquiries, Transparency International investigators engaged with Exved under false pretenses and discovered that it is involved in the import of sensitive goods, including microchips and telecommunications technology from Asia, thus potentially breaching sanctions. The laundering techniques being utilized allow these cross-border transactions to be masked as domestic activities, making it challenging for regulators to pinpoint the flow of money.
Recent Developments and Regulatory Challenges
Previously, MKAN Coin was operational in Dubai, allowing stablecoin transactions out of Russia until it faced regulatory shutdown in 2024. Shortly thereafter, Grinex was launched and quickly moved nearly $4 billion using a newly established ruble stablecoin. Despite denials from Grinex about connections to Garantex, the evidence suggests that many users transitioned from the latter to the former amid ongoing scrutiny.
The Russian government’s apparent lack of action against these operations raises questions about the efficacy of Western sanctions aimed at curbing such illicit activities. In August 2025, additional sanctions were imposed on several individuals and entities linked to Garantex. This leveling of sanctions came after a considerable international operation that succeeded in seizing Garantex’s servers and detaining personnel involved in the money laundering schemes.
Conclusion
Among those arrested during the operation was Garantex’s chief technical administrator, Alexey Besciokov, who was apprehended during a vacation in India. The circumstances of his death in an Indian prison post-extradition request remains shrouded in mystery, with speculation regarding foul play circulating in certain circles. This follows a history of suspicious fatalities associated with Garantex’s leadership, highlighting the risks faced by those involved in the complex and perilous realm of cryptocurrency crime.
Overall, investigations reveal that, rather than being dismantled, Garantex’s expansive network continues to thrive, reinforcing its status as an international money laundering hub operating from the heart of Moscow’s financial district.
