Under the Microscope: US and UK Investigate $20 Billion Crypto Transactions through Russian Exchange

The US and UK are reportedly investigating over $20 billion worth of cryptocurrency transactions that have passed through Garantex, a Russia-based virtual exchange, as part of efforts to crack down on sanctions evasion supporting Russia's actions in Ukraine. These transactions, primarily involving the dollar-pegged cryptocurrency Tether, have occurred since Garantex was sanctioned by both the US and UK on suspicion of enabling financial crimes and illicit transactions in Russia. Despite extensive sanctions imposed on Russia, it has managed to avoid economic collapse through various means, including utilising encrypted digital currency transactions. The Biden administration has been targeting crypto exchanges like Garantex since the early stages of the conflict, with the $20 billion in transactions representing one of the largest breaches of sanctions on Russia to date. However, authorities caution that the investigation is ongoing, and it's too early to determine the conclusions due to the complexity of cryptocurrency transactions. Tether Holdings, based in the British Virgin Islands, has stated it froze assets connected to entities on the US sanctions list but denies any wrongdoing. Garantex, which was founded in Estonia in 2019 but now primarily operates from Moscow, has not responded to requests for comment. The US Treasury and UK authorities declined to comment further on the matter.