Tether has frozen $27 million in USDT tied to the sanctioned Russian cryptocurrency exchange Garantex, leading the platform to halt trading and withdrawals. The exchange, sanctioned by the European Union in February as part of measures against Russia, warned users that all USDT in Russian wallets could be at risk.
Garantex, originally registered in Estonia but operating in Moscow and St. Petersburg, saw its trading volumes surge 1,000% in three years. U.S. regulators had sanctioned the platform in 2022, citing connections to illicit financial activities.
The move by Tether signals increased enforcement of sanctions within the crypto sector, raising concerns about the impact on Russian users. Russian lawmakers criticized the freeze but acknowledged that completely blocking cryptocurrency use in the country remains difficult.
Despite Garantex’s removal from major exchanges, data suggests its activity remained high before the freeze. The incident highlights ongoing regulatory pressure on crypto platforms operating in sanctioned jurisdictions.
