Full Breakdown
Garantex and A7: The Evolving Landscape of Cryptocurrency Sanctions Evasion
9/26/2025, 11:43:19 PM
Garantex's Continued Operations Amid Sanctions
A recent investigation by Transparency International Russia has revealed that the Russian cryptocurrency exchange Garantex continues to operate despite being sanctioned by the U.S. Treasury's Office of Foreign Assets Control (OFAC) in 2022. The exchange, which was linked to illicit activities including ransomware operations and darknet marketplaces, has adapted its operations through offshore financial hubs and other cryptocurrency platforms. Garantex's infrastructure has reportedly evolved into a decentralized money laundering system, supported by entities such as Exved, a cross-border payment processor, and MKAN Coin, a Telegram-based exchange.
The Death of Aleksej Besciokov
Aleksej Besciokov, one of Garantex's operators, died in custody in India on August 31, 2025, from a heart attack while awaiting extradition to the U.S. His death raises questions about the future of Garantex's leadership and operations. Following the U.S. crackdown, Garantex reportedly shifted its operations to Grinex, a platform registered in Kyrgyzstan, which has also been sanctioned for facilitating significant cryptocurrency transactions despite the sanctions.
Mechanisms of Evasion
The Transparency International report details how Exved allows users to convert fiat currency into stablecoins like Tether's USDT, which are then moved through offshore jurisdictions to obscure their origins. The report's lead researcher, Kristine Baghdasaryan, highlighted that Exved's operations are designed to facilitate the import of dual-use goods into Russia while evading scrutiny. The arrangement involves complex networks, including a Russian company, Paysol LLC, acting as an agent for Exved, which obscures the actual flow of funds.
MKAN Coin: A Successor to Garantex
MKAN Coin has emerged as a successor to Garantex, inheriting its laundering methods and extending its operations globally. The report indicates that MKAN Coin has branches in various countries, including Kyrgyzstan, Spain, Brazil, Thailand, and Georgia. Baghdasaryan noted that MKAN Coin operates similarly to Garantex, facilitating crypto-to-cash transactions through Telegram.
The A7 Group and Election Interference
In a separate but related development, leaked documents from the A7 group, controlled by sanctioned Moldovan fugitive Ilan Shor, reveal the use of cryptocurrency in sanctions evasion and election interference in Moldova. The A7 group has reportedly facilitated $89 billion in cross-border transactions for Russian businesses, leveraging cryptocurrency to bypass traditional financial systems. The leaks indicate that Shor's companies have been involved in funding political campaigns and disinformation efforts in Moldova, further illustrating the intersection of cryptocurrency and geopolitical maneuvering.
Official Statements & Responses
U.S. authorities have expressed concern over the continued operations of Garantex and its affiliates, emphasizing the need for international cooperation to combat sanctions evasion. The U.S. Treasury has imposed sanctions on Grinex and other entities linked to Garantex, while the State Department announced a $5 million bounty for information leading to the arrest of Mira Serda, another Garantex operator.
Criticism & Opposition
Critics argue that the ability of Garantex and similar entities to adapt and continue operations despite sanctions highlights significant gaps in regulatory oversight and enforcement. The evolving nature of cryptocurrency infrastructure poses challenges for authorities attempting to curb illicit financial activities.
Conflicting Reports & Gaps
While the investigation by Transparency International provides substantial insights into Garantex's operations, there are discrepancies regarding the extent of its current activities and the effectiveness of sanctions. Further investigations are needed to fully understand the implications of these findings on global financial systems.
Verbatim Quotes
“Every time regulators cut off one ‘head’ of this crypto hydra, another appears under a new name,” — Kristine Baghdasaryan, Lead Researcher, Transparency International Russia
“While the name was new, the infrastructure, personnel, bots, and behavior patterns were not,” — Kristine Baghdasaryan, Lead Researcher, Transparency International Russia
“The arrangement worked as follows: our fictional Russian importer would transfer rubles to Feilian’s Alfa-Bank account in Russia,” — Kristine Baghdasaryan, Lead Researcher, Transparency International Russia
“[MKAN Coin] is a core product of Garantex,” — Kristine Baghdasaryan, Lead Researcher, Transparency International Russia
