U.S. Sanctions Russian Crypto Exchange Co-Founders Over Alleged Illicit Activities
U.S. sanctions Garantex co-founders and linked firms over alleged illicit finance, targeting Russian crypto networks.
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has added three Russian nationals—Pavel Karavatskiy, Alexander Mira Serda, and Sergey Mendeleev—to its Specially Designated Nationals (SDN) list, barring them from the American financial system. The move comes amid ongoing investigations into Garantex, a cryptocurrency exchange accused of facilitating illicit transactions.
Alongside the individuals, OFAC sanctioned several Russian companies linked to the platform: A7 Agent LLC, A7 LLC, A71 LLC, Indefi Smartbank, Grinex, and Exved.
Karavatskiy, Mira Serda (also known as Alexander Ntifo-Siao), and Mendeleev were key figures at Garantex, which specialized in converting Russian rubles into stablecoins. Initially sanctioned in April 2022 for enabling cybercrime rather than direct sanctions evasion, the exchange has since been implicated in laundering funds tied to ransomware groups, darknet marketplaces Hydra and Conti, terrorism financing, and drug trafficking.
On March 7, 2025, authorities from the U.S., Germany, and Finland coordinated to seize Garantex’s domains and freeze over $26 million in assets. Administrators Alexey Beshchyokov and Mira Serda were charged with money laundering, while Beshchyokov also faced accusations of sanctions violations and operating an unlicensed money transfer business. He was arrested in India and is awaiting extradition.
Tether subsequently blocked wallets linked to Garantex holding approximately $31 million in USDT.
Founded in 2019 in Estonia, Garantex initially operated from Moscow’s Federation Tower and St. Petersburg. Marketed as a fee-free exchange with no spread, it promised transparent pricing. However, in February 2022, Estonia revoked its license over anti–money laundering and counter-terrorism financing (AML/CFT) violations. Despite this, the platform continued operations, openly serving sanctioned Russian users.
As Western sanctions intensified following Russia’s full-scale invasion of Ukraine, Garantex became a prominent fixture in Russia’s crypto market, maintaining fiat on-ramps even after major payment systems exited the country.
After its shutdown, a Kyrgyzstan-based exchange, Grinex, emerged as its likely successor. Reports link the platform to Moldovan oligarch Ilan Shor. According to theFinancial Times, roughly $9.3 billion moved through Grinex in just four months, primarily via the A7A5 token—a ruble-pegged stablecoin launched in February 2025.
The A7A5 is backed by deposits at PSB Bank, a sanctioned Russian financial institution tied to the defense sector. Circulation has rapidly grown to 12 billion tokens (about $156 million), with a small group of participants transferring daily volumes exceeding the total issued supply.
The OFAC designations signal intensified scrutiny on crypto networks facilitating illicit finance tied to Russia, underscoring Washington’s broader effort to disrupt financial channels supporting sanctioned entities.
