Tether has frozen Garantex's funds in excess of 2.5 billion roubles. The exchange has suspended operations and Russian users fear further freezes.
Tether has dealt a severe blow to Russian exchange Garantex, blocking wallets worth more than 2.5 billion roubles.
This unexpected event has forced the platform to temporarily suspend all transactions, including withdrawals.
The exchange team has already stated that it is actively seeking a solution, but for now users can only wait.
Stablecoin issuer Tether has frozen $27 million worth of USDT on the Russian crypto exchange Garantex, causing the platform to suspend all trading and withdrawal services. The U.S. Treasury Department imposed sanctions on Garantex as early as April 2022. https://t.co/N7V2ElB2Pf
Tether, the issuer of the USDT stablecoin, froze Garantex's assets in its wallets. The amount is considerable: more than 2.5 billion roubles, equivalent to about USD 25 million. The official reason for the freeze has not been disclosed, but the crypto community is already speculating that it is sanctions. Garantex called the action a "war against the Russian crypto market", warning that other platforms could be affected.
The exchange reacted quickly by suspending all services. Currently, users cannot withdraw their funds or make transactions on the platform. The Garantex team has assured that it will not give up and is working on a solution, but at the moment there are no firm dates for the restoration of operations.
Why is it important for users?
USDT is one of the most widely used stablecoins in the world, and millions of traders use it to store funds and trade. The blocking of Garantex's wallets is not only a problem for the exchange, but a warning sign for all those who hold USDT on Russian platforms.
All USDT in Russian wallets are now at risk.
Other Russian platforms could also suffer the same fate.
Tether, as a centralised entity, can block any address at its discretion.
This last point is crucial: unlike decentralised cryptocurrencies such as Bitcoin, USDT is totally controlled by Tether, which allows the company to freeze funds and intervene in transactions, as happened in the case of Garantex.
Historical Context
The blockade was not a complete surprise to those who follow the sector. Garantex had already landed in the crosshairs of US authorities.
April 2022 - The Office of Foreign Assets Control (OFAC) and the US Treasury Department placed the exchange on the sanctions list as part of a coordinated action against Garantex and the darknet market Hydra.
Accusations - Involvement in money laundering operations amounting to more than $100 million, including funds linked to the hacker group Conti and the Hydra platform.
The sanctions pressure on the Russian market is increasing, and the crypto sector is no exception. Tether, being an American company, operates under US regulations.
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Tether has dealt a severe blow to Russian exchange Garantex, blocking wallets worth more than 2.5 billion roubles.
This unexpected event has forced the platform to temporarily suspend all transactions, including withdrawals.
The exchange team has already stated that it is actively seeking a solution, but for now users can only wait.
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What happened?
Tether, the issuer of the USDT stablecoin, froze Garantex's assets in its wallets. The amount is considerable: more than 2.5 billion roubles, equivalent to about USD 25 million. The official reason for the freeze has not been disclosed, but the crypto community is already speculating that it is sanctions. Garantex called the action a "war against the Russian crypto market", warning that other platforms could be affected.
The exchange reacted quickly by suspending all services. Currently, users cannot withdraw their funds or make transactions on the platform. The Garantex team has assured that it will not give up and is working on a solution, but at the moment there are no firm dates for the restoration of operations.
Why is it important for users?
USDT is one of the most widely used stablecoins in the world, and millions of traders use it to store funds and trade. The blocking of Garantex's wallets is not only a problem for the exchange, but a warning sign for all those who hold USDT on Russian platforms.
This last point is crucial: unlike decentralised cryptocurrencies such as Bitcoin, USDT is totally controlled by Tether, which allows the company to freeze funds and intervene in transactions, as happened in the case of Garantex.
Historical Context
The blockade was not a complete surprise to those who follow the sector. Garantex had already landed in the crosshairs of US authorities.
April 2022 - The Office of Foreign Assets Control (OFAC) and the US Treasury Department placed the exchange on the sanctions list as part of a coordinated action against Garantex and the darknet market Hydra.
Accusations - Involvement in money laundering operations amounting to more than $100 million, including funds linked to the hacker group Conti and the Hydra platform.
The sanctions pressure on the Russian market is increasing, and the crypto sector is no exception. Tether, being an American company, operates under US regulations.
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