Garantex: Russia’s Banned Exchange Reestablishes a $34 Million Crypto Network

In a surprising development, Russian cryptocurrency exchange Garantex, which was previously blacklisted for facilitating illicit finance, has quietly resumed operations and is moving funds again. A recent investigation reveals that Garantex has created a complex payout system, demonstrating resilience against regulatory actions.

Key Takeaways

Garantex has reestablished its financial activities despite regulatory setbacks, including server seizures.
Over $34 million in Bitcoin and Ethereum has been accumulated for customer payouts, not for exchange operations.
The exchange has made payouts of at least $25 million to former users, raising concerns among regulators.
Garantex is linked to major centralized exchanges, complicating regulatory enforcement.
Russia appears to be using blockchain technology strategically for state-aligned objectives, rather than just following U.S. innovations.

Garantex moves billions

Garantex’s Quiet Comeback

Transformative findings by blockchain analytics firm Global Ledger highlight Garantex's resurgence. The exchange has managed to develop a sophisticated payout mechanism, indicating that despite various attempts to shut it down, including server seizures and asset freezes, Garantex has successfully revived its financial activities. This situation reveals that high-risk exchanges continue to adapt their on-chain strategies, often staying ahead of regulatory scrutiny.

The analysis confirmed that in spite of the challenges faced in early 2025, Garantex has been accumulating substantial amounts of funds in new wallets.

Garantex’s Bitcoin and Ethereum Holdings

Global Ledger discovered new Bitcoin (BTC) and Ethereum (ETH) wallets operated by Garantex, which together have gathered over $34 million in cryptocurrency. Importantly, this reserve is intended for customer payouts rather than regular exchange operations, highlighting an intentional strategy to maintain liquidity and goodwill among its users.

Thus far, Garantex has successfully paid out at least $25 million to its former users, which has heightened concerns for regulatory bodies. Furthermore, more than 88% of the amassed Ethereum reserves remain untouched, signifying a significant fund available for future operations.

A notable aspect of this analysis is the exposure of these reserve and payout wallets to the top 10 Centralized Exchanges (CEXs) listed on CoinMarketCap. This connection indicates that Garantex is utilizing mainstream financial on- and off-ramps, underscoring a vulnerability for compliant exchanges and complicating regulatory enforcement efforts to track these indirect financial flows.

The Russia-U.S. Comparison

This situation raises questions about whether Russia is emulating U.S. financial innovations to undermine them, or if it is developing its own unique strategy. While the U.S. is at the forefront of blockchain advancement, Russia appears to be leveraging this technology on a systemic level to evade sanctions.

Research has identified ongoing initiatives through successor entities like Grinex and the ruble-backed crypto-clearing network A7A5. These moves signal a long-term vision for establishing sovereign, non-USD payment systems that challenge the financial supremacy of Western nations. Concurrently, the Garantex network is morphing into a decentralized service model focused on sanctions evasion via Telegram workflows and agency contracts.

In essence, Russia is not simply adopting Western crypto tools but is instead weaponizing them to construct a resilient shadow financial system.

Russia’s Approach to Cryptocurrency

These developments align with Russia's complex regulatory stance. A recent directive from the Central Bank of Russia indicates that instead of distancing itself from digital assets, the country is incorporating them for state-aligned purposes.

Final Thoughts

As Garantex continues to navigate the complexities of the cryptocurrency market, its ability to adapt to regulatory challenges reflects broader trends within Russia's strategic use of blockchain technology. The implications of this evolution could have far-reaching effects on the global financial landscape.