Why was Garantex designated?

OFAC designated Garantex in April 2022 for operating in the Russian financial services sector and processing transactions that evade Russia sanctions.

Can US persons use Garantex?

No. Garantex is an OFAC-designated entity. Any transaction by a US person with Garantex, including sending or receiving crypto from its addresses, is a sanctions violation.

What should crypto businesses do about Garantex?

Screen all counterparty wallets against known Garantex addresses. Block any transaction involving designated exchange addresses. Use SanctionsAI for wallet screening.

What does the Garantex case mean for crypto exchanges?

OFAC will designate entire exchanges, not just individual addresses. Exchanges operating in sanctioned jurisdictions face direct designation risk.

Garantex exchange OFAC designation case study

In April 2022, OFAC designated Garantex, a Russia-based crypto exchange, for operating in violation of Russia sanctions. This case highlights how OFAC targets crypto infrastructure supporting sanctioned jurisdictions.

Background

Garantex was a crypto exchange registered in Estonia but operating primarily from Russia. After Russia's invasion of Ukraine in February 2022, Garantex continued processing transactions for Russian users and entities, including sanctioned parties.

Why it was designated

OFAC designated Garantex on April 5, 2022, for operating in the Russian financial services sector. The exchange was used to evade US sanctions by processing transactions that would otherwise be blocked under Russia sanctions programs.

Significance

The Garantex designation demonstrated that OFAC will designate entire crypto exchanges, not just individual addresses. Any US person who transacts with Garantex, including sending or receiving crypto from its addresses, commits a sanctions violation.

For compliance teams: Screen all counterparty wallets against known Garantex addresses. Use SanctionsAI wallet checker to identify designated exchange addresses.

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Frequently Asked Questions

Why was Garantex designated?: OFAC designated Garantex in April 2022 for operating in the Russian financial services sector and processing transactions that evade Russia sanctions.
Can US persons use Garantex?: No. Garantex is an OFAC-designated entity. Any transaction by a US person with Garantex, including sending or receiving crypto from its addresses, is a sanctions violation.
What should crypto businesses do about Garantex?: Screen all counterparty wallets against known Garantex addresses. Block any transaction involving designated exchange addresses. Use SanctionsAI for wallet screening.
What does the Garantex case mean for crypto exchanges?: OFAC will designate entire exchanges, not just individual addresses. Exchanges operating in sanctioned jurisdictions face direct designation risk.