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Tether Shuts Down Russian Funds
Tether, the company behind the USDT stablecoin, has frozen $27 million linked to Garantex, a Russian crypto exchange. This move forced the exchange to stop trading and withdrawals.
Garantex confirmed the freeze on March 6 via Telegram, saying Tether had blocked its wallets holding over 2.5 billion rubles (about $27 million). The exchange has since suspended operations, leaving users stranded.
Why Garantex Got Sanctioned
The European Union sanctioned Garantex on Feb. 26 as part of its 16th wave of penalties against Russia. The EU accused Garantex of having close ties to Russian banks already under sanctions.
This isn’t the first time Garantex has been blacklisted. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on the exchange in April 2022. Despite these restrictions, Garantex kept operating and even grew significantly.
Russian Crypto Users on Edge
Garantex warned its users that “all USDT in Russian wallets is currently under threat.” The exchange also stated it would fight back, though it didn’t specify how.
Russian lawmaker Anton Gorelkin believes this won’t be the last time Western countries pressure the crypto industry. However, he also insisted that completely blocking crypto access for Russia is “impossible.”
Garantex’s Meteoric Growth
Despite sanctions, Garantex has seen a massive increase in trading activity. According to CoinPaprika, its daily trading volume skyrocketed from $11 million in 2022 to $121.6 million in 2025—a jump of over 1,000%.
For comparison, Binance, the world’s largest crypto exchange, handles around $23 billion in daily trades. Garantex may not be a major global player, but its growth is significant in Russia’s crypto scene.
What Happens Next?
Tether has yet to comment on its decision to freeze the funds. Meanwhile, Garantex’s future remains uncertain. Will it find a way to resume operations, or is this the beginning of the end for the exchange? Only time will tell.
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