Stablecoin giant Tether has frozen $27 million in USDT on the sanctioned Russian crypto exchange Garantex, leading to the platform suspending its services. The move, announced by Garantex on March 6 via Telegram, underscores increasing regulatory scrutiny on Russia’s crypto sector.
Tether Joins Sanctions Against Russian Crypto
“Tether has entered the war against the Russian crypto market and blocked our wallets worth more than 2.5 billion rubles [$27 million],” Garantex stated. In response, the exchange halted all operations, including withdrawals, and placed its website under maintenance.
The freeze follows the European Union’s decision on Feb. 26 to sanction Garantex as part of its 16th sanctions package against Russia’s invasion of Ukraine. The EU accused Garantex of ties to sanctioned Russian banks, making it the first Russia-based cryptocurrency exchange to face EU restrictions.
The U.S. had already blacklisted Garantex in April 2022 through the Office of Foreign Assets Control (OFAC), citing illicit financial activities. Despite these measures, the exchange continued to operate within Russia, reportedly seeing a 1,000% surge in trading volumes over the past three years.
“All USDT in Russian Wallets is Under Threat”
Following the Tether freeze, Garantex issued a stark warning to its users: “All USDT in Russian wallets is currently under threat.” The platform vowed to resist the sanctions, emphasizing that it would not back down.
This latest move highlights the growing weaponization of stablecoins in global geopolitics. While Tether has not officially commented on the matter, its decision reflects increasing compliance with international regulatory pressures.
Impact on Russia’s Crypto Market
Russian lawmakers have responded with skepticism about the broader implications of Tether’s actions. Anton Gorelkin, deputy head of Russia’s parliamentary information policy committee, suggested that the freeze marks only the beginning of Western pressure on Russia’s crypto industry. However, he asserted that “it is impossible to completely block this market for Russia.”
Also Read: EU Approves 10 Stablecoin Issuers Under MiCA – Tether (USDT) Left Out
While Garantex’s daily trading volumes of $121.6 million (as of March 1, 2025) remain dwarfed by giants like Binance, the freeze raises concerns over the stability of Russia’s crypto infrastructure. As global sanctions intensify, Russia’s ability to leverage cryptocurrencies for financial operations may face increased hurdles.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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