Tether, the world’s largest stablecoin issuer, has frozen $27 million in USDT held by the Russian crypto exchange Garantex. This move comes shortly after the European Union imposed sanctions on Garantex, leading to the suspension of trading and withdrawals on the platform.
Tether Blocks Garantex Wallets
On March 6, Garantex announced via Telegram that Tether had frozen its wallets, effectively locking up 2.5 billion rubles (approximately $27 million) worth of USDT. In response, Garantex temporarily suspended all operations, including withdrawals, citing that its website was under maintenance.
Garantex warned its users that “all USDT in Russian wallets is currently under threat” and pledged to continue fighting against what it described as an attack on the Russian crypto market.
Sanctions and Regulatory Pressure
The European Union sanctioned Garantex on February 26 as part of its latest measures against Russia amid the ongoing conflict with Ukraine. This marked the first time the EU has directly targeted a cryptocurrency exchange operating in Russia, linking it to previously sanctioned Russian banks.
The United States had already sanctioned Garantex in April 2022. The Treasury Department’s Office of Foreign Assets Control (OFAC) accused the exchange of facilitating illicit transactions involving ransomware groups and darknet markets such as Hydra and Conti.
Impact on the Russian Crypto Market
Although Garantex is not listed on major aggregators like CoinGecko or CoinMarketCap, data from CoinPaprika indicates that the exchange’s daily trading volume has surged by over 1,000% in the past three years. From approximately $11 million in March 2022, its daily volume reached $121.6 million by March 2025.
Despite the latest crackdown, Russian lawmakers believe that the country’s crypto market will continue operating. Anton Gorelkin, deputy head of the Russian parliament’s committee on information policy, stated on Telegram that Western countries will likely continue exerting pressure but that it is “impossible to completely block this market for Russia.”
Conclusion
Tether’s decision to freeze USDT on Garantex underscores the increasing regulatory scrutiny on crypto platforms linked to sanctioned entities. While the move significantly impacts the Russian crypto ecosystem, experts believe that Russia will continue finding ways to operate within the global digital asset landscape.
