Garantex Exchange Sanctions: How Russian Crypto Traders Are Adapting

Garantex Exchange Sanctions: How Russian Crypto Traders Are Adapting

Russian Crypto Transfer Cost Calculator

This calculator shows the costs associated with using sanctioned Russian crypto networks like Grinex, Exved, and MKAN Coin. Based on reports from Russian traders, fees have increased significantly following U.S. and EU sanctions.

Garantex sanctions hit Russian crypto traders hard - but they’re not stopping

On April 5, 2022, the U.S. Treasury slapped sanctions on Garantex, a major Russian cryptocurrency exchange. At the time, many assumed this would cut off Russian traders from global crypto markets. But by August 14, 2025, the Treasury came back with an even stronger move - re-designating Garantex under a new executive order, this time for directly enabling ransomware gangs and darknet markets. They claimed the platform had processed over $100 million in illicit crypto transactions since 2019. Yet, Russian traders didn’t disappear. They adapted.

Today, Garantex doesn’t really exist as a single website. It’s a ghost network. Its operators moved operations to shadow platforms like Grinex, Exved, and MKAN Coin. These aren’t just backups - they’re upgrades. Built to slip past sanctions, they use Telegram bots, Hong Kong shell companies, and Alfa-Bank accounts to move money without leaving a trace in Russian banking systems. For Russian crypto users, the system still works. It’s just harder, slower, and more expensive.

How the Garantex ecosystem bypasses sanctions

Here’s how it actually works on the ground. A Russian trader wants to send rubles abroad. They don’t go through a traditional exchange. Instead, they transfer rubles to a Hong Kong-based company called Feilian Company Limited. This company has an account at Alfa-Bank - yes, a Russian bank. But here’s the twist: Feilian also holds foreign bank accounts in Dubai, Spain, and Thailand. Once the rubles hit Feilian’s account, they’re converted into USDT (Tether), dollars, or yuan, and sent out to international recipients.

The crypto part? Invisible to banks. The bank sees a payment from Feilian to a foreign electronics supplier. It doesn’t know the original sender was a trader in Novosibirsk trying to buy Bitcoin. The crypto layer sits between the ruble deposit and the final dollar payout. This multi-step process, documented by Transparency International Russia in September 2025, is now standard for thousands of Russian users.

And it’s not just individuals. The Treasury’s August 2025 report tied Garantex’s network to a Russian ransomware-as-a-service operation and one of the world’s largest darknet marketplaces. That’s not rumor - it’s forensic evidence from blockchain analysis. Over 60% of Garantex-linked transactions in 2024 were traced to known criminal addresses, according to Chainalysis.

Traders pay more, wait longer, and learn on their own

Life on the Garantex network isn’t easy anymore. Before the March 2025 crackdown, users could get set up in a week. Now, new users report needing 3 to 4 weeks just to get access. Why? Because verification is now done through Telegram bots, not customer support. These bots give basic instructions - no emails, no live chat, no help desk.

Transaction fees have jumped from 0.1% to as high as 1.5%. One user on the Russian forum BitBrothers said, “I used to send $5,000 for $5 in fees. Now it’s $75. I still do it because I have no other choice.”

And the quality of information has dropped. Before, users could find guides, tutorials, and even video walkthroughs. Now, everything’s scattered across private Telegram channels. Newcomers rely on word-of-mouth from people who’ve been through it. “I spent two weeks asking strangers on Telegram just to figure out how to link my wallet,” said a 28-year-old trader from Kazan in an iStories.media interview. “No one helps you. You just figure it out or give up.”

A sleek Telegram bot guiding Russian users with glowing digital coins rising into hidden exchange towers.

The scale of the network - and why it’s growing

Despite all the pressure, Garantex’s ecosystem is bigger than ever. Transparency International Russia estimated in September 2025 that the network moves around $300 million per month. That’s 15% of all Russian crypto-based international transfers. The Central Bank of Russia reported 18.7 million crypto users in June 2025 - up 22% from the year before. Most of them aren’t speculators. They’re people trying to protect their savings from inflation, buy foreign goods, or send money to family abroad.

The Treasury sanctioned six other companies linked to Garantex - including A7, InDeFi Bank, and Exved - but that didn’t shut them down. Exved, headquartered in Moscow’s International Business Center, now handles cross-border payments for dual-use goods imported into Russia. That means it’s not just crypto - it’s medical equipment, electronics, and industrial parts. The network is no longer just a crypto exchange. It’s a financial lifeline for Russia’s underground economy.

Law enforcement is fighting back - but the game is changing

The U.S. Secret Service, German police, and Finnish authorities seized three Garantex domains and froze $26 million in crypto in March 2025. They arrested Aleksej Besciokov in India. The State Department put up a $6 million reward - $5 million for the arrest of Aleksandr Mira Serda, Garantex’s co-founder.

But the network didn’t collapse. It evolved. Grinex, created by former Garantex employees, now serves as the main front-end. It looks different. It runs on different servers. But the same people are behind it. Chainalysis CEO Michael Gronager said in September 2025, “Sanctions are creating more sophisticated, harder-to-track money laundering systems rather than eliminating them.”

That’s the new reality. Western sanctions were designed to isolate Russia from global finance. But crypto doesn’t care about borders. It doesn’t need SWIFT. It doesn’t need banks. All it needs is an internet connection and a Telegram app.

An ornate financial clocktower labeled Garantex Ecosystem ticking over a Russian city with law enforcement chasing disappearing trails.

What’s next for Russian crypto traders?

There’s no sign this will end soon. The Russian government hasn’t cracked down on these platforms - in fact, they’ve stayed silent. Why? Because they benefit. The system keeps capital flowing, imports coming in, and elites protected. Meanwhile, the U.S. is expanding its sanctions list, but each new target just forces the network to split further - into more jurisdictions, more intermediaries, more layers of obfuscation.

For Russian traders, the choice is simple: use the Garantex ecosystem or lose access to global markets. Most choose the former. They’ve accepted higher fees, longer waits, and zero support. They’ve learned to trust strangers on Telegram more than official institutions.

And as long as inflation keeps rising in Russia and Western goods stay out of reach, this system won’t fade. It will keep adapting. Because when people need to move money, they’ll always find a way - even if it means building a shadow financial system from scratch.

Frequently Asked Questions

Is Garantex still operating as a website?

No. The original Garantex website was taken down after U.S. and European law enforcement seized its servers in March 2025. But its operators launched successor platforms like Grinex, Exved, and MKAN Coin. These platforms function the same way - they just use different domains, servers, and Telegram bots to avoid detection.

Can Russian users still buy Bitcoin after the sanctions?

Yes. Russian users can still buy Bitcoin and other cryptocurrencies through the Garantex ecosystem. They convert rubles to USDT via intermediary companies like Feilian Company Limited, then send the crypto to international wallets. The process is slower and costlier than before, but it still works.

Why do Russian traders use Tether (USDT) instead of Bitcoin?

USDT is preferred because it’s stable, widely accepted internationally, and easier to convert into fiat currency through shell companies. Bitcoin’s price volatility makes it risky for moving savings. USDT acts like digital cash - it holds its value and moves quickly across borders without triggering bank alerts.

Are these platforms legal in Russia?

Technically, no. Russia’s Central Bank bans unlicensed crypto exchanges. But enforcement is inconsistent. The government hasn’t cracked down on these networks because they help bypass Western sanctions and keep foreign currency flowing into the country. As long as they don’t openly advertise, they operate in a gray zone.

How much money is being moved through this system?

Transparency International Russia estimated in September 2025 that the Garantex network moves about $300 million per month. That’s roughly 15% of all Russian crypto-based international transfers. The total volume since 2019 exceeds $5 billion, according to blockchain forensic reports.

What happens if a Russian trader gets caught using Garantex?

There’s no public record of Russian citizens being prosecuted for using these platforms. The risk is mostly financial - frozen wallets orèą«éȘ— (scammed) by fake agents. The real targets are the operators, not users. As long as traders don’t openly brag about it or use it for obvious criminal activity, they’re unlikely to face legal consequences in Russia.

19 Comments

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    Derayne Stegall

    November 17, 2025 AT 04:48
    This is wild đŸ€Ż I never thought crypto could become a whole underground banking system. Russian traders are basically building their own SWIFT with Telegram bots and Tether. Respect. 🚀
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    Shanell Nelly

    November 17, 2025 AT 08:52
    Honestly, this is one of the most fascinating examples of human adaptability I've seen in years. People aren't just evading sanctions-they're re-engineering global finance from the ground up. The fact that they're using Alfa-Bank accounts to launder through Hong Kong shell companies? Genius in the most chaotic way possible. 💡
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    Aayansh Singh

    November 19, 2025 AT 02:06
    Let’s be real-this isn’t innovation, it’s organized crime with a LinkedIn profile. You call it ‘adaptation,’ I call it a $5 billion money laundering empire disguised as ‘saving savings.’ If you think this is some noble resistance, you’re delusional. Chainalysis data says 60% of transactions go to ransomware. That’s not finance, that’s terrorism funding.
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    Rebecca Amy

    November 20, 2025 AT 22:24
    so like... they just use telegram bots now? no support? lol i'd just give up
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    satish gedam

    November 20, 2025 AT 23:55
    I’ve seen this kind of resilience before-in war zones, in hyperinflation countries, in places where banks fail. What’s happening here isn’t unique. It’s human. People don’t stop moving value because some government says so. They just get smarter. And honestly? If your savings are evaporating at 20% a year, you’d do the same. 🙏
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    Nataly Soares da Mota

    November 21, 2025 AT 20:02
    The epistemological rupture here is profound. Sanctions, as a tool of liberal internationalism, assumed a bounded, state-centric financial architecture. But crypto, by design, is a decentralized, permissionless, borderless ontology. What we’re witnessing isn’t evasion-it’s the collapse of sovereign monetary authority into a post-statist liquidity matrix. The state thought it was policing nodes. It was actually fighting a distributed ledger of survival. đŸ€–
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    Teresa Duffy

    November 23, 2025 AT 18:34
    I just want to say how brave these people are. Imagine having to learn everything from strangers on Telegram because no one will help you. No customer service. No safety net. Just you, your phone, and a 1.5% fee just to keep your life going. That’s not crypto-that’s grit. đŸ’Ș
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    Sean Pollock

    November 24, 2025 AT 04:30
    ok but like... if the us is sanctioning them why are they still using alfa bank? isn't that like... kinda sus? also i think the whole thing is a deep state psyop to make russia look worse. like who even runs these telegram bots? aliens?
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    Carol Wyss

    November 24, 2025 AT 07:54
    It breaks my heart that people have to go through this just to send money to family or buy medicine. No one should have to risk their savings because of geopolitical drama. The fact that they’re still finding a way? That’s love. That’s resilience. Keep going, you’re not alone. đŸ«‚
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    Student Teacher

    November 25, 2025 AT 05:20
    Wait-so if the original Garantex site is gone, how do new users even find Grinex or Exved? Is there a secret subreddit? A Telegram group that only shows up after you’ve been verified? I’m curious how onboarding works now.
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    Ninad Mulay

    November 27, 2025 AT 01:07
    Bro, this is like the Indian chai wallah version of global finance. You don’t ask for a receipt, you don’t need a branch-you just nod, hand over the rupees, and the chai (or USDT) shows up later. No forms. No ID. Just trust. And in a world where trust is broken, that’s the only currency left.
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    Mike Calwell

    November 28, 2025 AT 10:06
    so they just use tethers now? cool. i still think crypto is a scam tho
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    Grace Craig

    November 29, 2025 AT 07:30
    The institutional failure here is not merely regulatory-it is ontological. The Western liberal order assumed that financial exclusion would compel behavioral compliance. Instead, it catalyzed the emergence of a parallel financial cosmology, one that privileges operational resilience over legal legitimacy. The Garantex ecosystem is not a workaround; it is the logical culmination of a system that treats human survival as an externality.
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    Ryan Hansen

    December 1, 2025 AT 02:51
    I’ve been following this for a while now. What’s really interesting is how the network’s structure mirrors decentralized finance principles-no central server, no single point of failure. Each successor platform like Grinex or MKAN Coin isn’t just a clone-it’s a node in a living organism. And the fact that they’re now moving medical equipment and industrial parts? That’s not just crypto anymore. That’s a full-blown parallel economy. The Treasury keeps adding names to a list, but the system’s already evolved past the need for names.
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    rahul saha

    December 2, 2025 AT 08:37
    i mean... if the us is so worried about ransomware, why not just freeze the usdt addresses? why keep sanctioning websites that dont even exist anymore? this feels like chasing ghosts with a flashlight
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    Marcia Birgen

    December 3, 2025 AT 10:43
    I’ve been reading about this for weeks and I just want to say-thank you for writing this. So many people think this is just about Bitcoin or scams, but it’s really about people trying to survive. I hope someone in policy reads this and realizes: you can’t sanction humanity. You can only make it harder. And harder doesn’t mean stopped.
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    Usama Ahmad

    December 4, 2025 AT 13:51
    bro this is actually kinda cool. like imagine building your own bank from scratch because the old one got taken away. no paperwork, no bureaucracy. just vibes and telegram bots. i respect it
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    Nathan Ross

    December 6, 2025 AT 05:23
    The irony is thick here. The U.S. sanctions were intended to isolate Russia. Instead, they’ve forced the creation of a more efficient, decentralized, and globally distributed financial network that operates outside the very systems the U.S. designed to control global capital. The sanctions didn’t break the system. They made it better.
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    garrett goggin

    December 8, 2025 AT 04:05
    This is all a CIA psyop to justify more drone strikes. The 'ransomware' links? Fabricated. The $300M/month? Made up by Chainalysis who gets paid by the Fed. The whole thing is a distraction so we don’t notice the real crypto manipulation happening in the shadows. They’re not trying to stop Garantex-they’re trying to scare people away from crypto so they can launch CBDCs. Wake up.

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