Sanctioned Russian Exchange Garantex Continues Moving Funds via Sophisticated Crypto Payout System

A new investigation by blockchain analytics firm Global Ledger reveals that the sanctioned Russian crypto exchange Garantex has successfully rebuilt an operational payout system and is quietly moving millions of dollars in cryptocurrency despite international pressure and law enforcement efforts.

• Active Operation: Researchers identified new Garantex-linked wallets on Bitcoin and Ethereum holding over $34 million in crypto, with at least $25 million already paid out to former users.
• Concealed Fund Flow:Garantex uses a sophisticated, multi-step process to obscure the money’s movement:
  1. Funds are sent to mixing services like Tornado Cash to scramble their origin.
  2. Money is then routed through cross-chain tools (e.g., Ethereum, Optimism, Arbitrum) to transfer assets between different networks.
  3. The funds ultimately end up in aggregation wallets before being distributed to individual payout wallets.
• ETH Reserves: The majority (over 88%) of the Ethereum reserves linked to Garantex remain in reserve, suggesting that the current payouts represent only an initial phase.

The findings highlight a broader trend: Russia’s increasing reliance on digital assets to circumvent Western sanctions.

• Russia’s Crypto Shift: After initially proposing a crypto ban in 2022, Russia reversed its position and now uses crypto to support sanctioned trade.
• State-Backed System: President Vladimir Putin has backed the A7 payment network, which launched the rouble-backed stablecoin A7A5 in 2025. This token has already supported over $87 billion in trading, enabling Russian firms to convert rubles into USDT for cross-border payments when traditional banks refuse Russian transfers.

The continued operation of Garantex, adapting with systems that mirror newer state-backed structures, demonstrates how countries are developing crypto-based payment networks to erode traditional forms of external pressure and circumvent sanctions.