Russian Sanctions and Crypto Exchange Access Limitations

1 January 2025 15 Comments Michael Jones

Sanctions Compliance Checker

Is Your Crypto Activity at Risk?

This tool helps you understand potential sanctions risks based on the latest U.S. Treasury actions. Check if your transactions might be flagged or frozen.

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Token Used

Used Sanctioned Exchanges

Garantex (sanctioned since 2022)

Grinex (sanctioned since 2025)

A7 Network (including A7, A71, A7 Agent)

How Russian Sanctions Are Cutting Off Crypto Access

Since 2022, U.S. sanctions have steadily shut down Russian cryptocurrency exchanges that helped users bypass financial isolation. What started as targeted actions against one exchange has turned into a full-scale crackdown on an entire network. Today, if you’re in Russia and trying to use a crypto platform, you’re not just fighting market volatility-you’re fighting a coordinated international effort to freeze your access.

Garantex: The First Target

Garantex was once one of the largest crypto exchanges serving Russian users. Founded by Sergey Mendelev, Aleksandr Mira Serda, and Pavel Karavatsky, it handled billions in transactions, mostly in USDT, the tethered stablecoin that kept its value steady while the Russian ruble swung wildly. Russians turned to Garantex because local banks were cut off from SWIFT, and traditional money transfers became nearly impossible.

On April 5, 2022, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) added Garantex to its sanctions list under Executive Order 14024. The reason? It was operating in Russia’s financial services sector-a direct violation of sanctions meant to isolate the Russian economy. But Garantex didn’t shut down. It adapted.

The March 2025 Crackdown

In March 2025, things changed. The U.S. Secret Service led a global operation that seized three Garantex domains, confiscated servers, and froze over $26 million in cryptocurrency. Co-founder Aleksej Besciokov was arrested in India while on vacation. For the first time, sanctions weren’t just paperwork-they were physical seizures and arrests.

Blockchain analytics firm Elliptic played a key role. They traced complex wallet obfuscation techniques Garantex used to hide funds. Their tools helped law enforcement identify and freeze USDT wallets tied to the exchange. It was a turning point: private companies were now actively helping governments track and block crypto flows.

Cartoon fox reprogramming a token while police helicopters hover and blockchain chains snap.

Grinex: The Successor That Didn’t Last

Within days of Garantex’s disruption, employees launched Grinex. Their own promotional materials admitted it was created "in response to sanctions and asset freezes that affected Garantex." Grinex wasn’t just a rebrand-it was a direct replacement, built to let users regain access to their frozen accounts.

Grinex introduced the A7A5 token, a ruble-backed stablecoin issued by a Kyrgyzstani company. Unlike USDT, which could be frozen by its issuer, A7A5 was designed to be harder to control. Russian users flocked to it. But OFAC didn’t wait. On August 14, 2025, Grinex was sanctioned under the same executive order as Garantex. The Treasury called it a successor entity, owned and controlled by the same people.

The A7 Network: A $8 Billion Underground System

Grinex didn’t operate alone. It was part of a larger network called the A7 ecosystem, which included companies like A7, A71, A7 Agent, InDeFi Bank, and Exved. Since early 2024, Elliptic tracked over $8 billion flowing through wallets linked to these entities. That number is likely conservative-many wallets remain hidden.

The A7 leaks, revealed in mid-2025, exposed how these companies connected to real users. Wallet addresses were tied to specific individuals and businesses. But in August 2025, something strange happened. Activity spiked on A7A5 wallets on the same day OFAC sanctioned Grinex. Experts believe this was a response to a security breach-possibly a leak of cryptographic keys-that forced the network to scramble and restructure its infrastructure.

Who’s Being Targeted Now

OFAC didn’t stop at exchanges. On August 14, 2025, they sanctioned the three main founders of Garantex: Mendelev, Serda, and Karavatsky. Six related companies in Russia and Kyrgyzstan were also added to the list. The U.S. State Department followed up with a $6 million reward fund. Up to $5 million is offered for information leading to Serda’s arrest.

This isn’t about punishing a single company anymore. It’s about dismantling a whole ecosystem-leaders, tech, funding channels, and even the stablecoins they created to replace USDT.

Three cartoon founders in prison stripes with a giant bounty poster and sanctioned map in background.

Why This Matters for Crypto Users

If you’re a Russian citizen trying to access crypto, your options are shrinking fast. Major global exchanges like Binance and Coinbase have long blocked Russian users. Domestic platforms like Garantex and Grinex are now sanctioned. Even new stablecoins like A7A5 are being monitored.

Elliptic now supports screening for A7A5 transactions on both Ethereum and TRON blockchains. That means any transfer using this token can be flagged, frozen, or traced. What was once a workaround is now a red flag.

What’s Next?

The U.S. strategy is clear: go after the people, the infrastructure, and the tools used to evade sanctions. The timing of the August 2025 actions coincides with renewed political pressure over Ukraine. President Trump’s public statement in late August 2025 that he was prepared to impose more sanctions if Putin didn’t agree to a ceasefire wasn’t a coincidence.

For Russian users, the path forward is narrowing. Even decentralized exchanges and peer-to-peer platforms are becoming riskier. Law enforcement now has better tools, more data, and stronger international cooperation. What used to be a gray area is now a target.

Is There Any Way Around It?

There’s no reliable, legal way for Russian users to access global crypto markets right now. Even if you use a VPN or a non-Russian exchange, your transaction history can still be flagged if you interact with sanctioned wallets or tokens like A7A5.

Some users have turned to cash-based peer-to-peer trades or over-the-counter (OTC) brokers. But these carry high risks-scams, arrests, and frozen funds are common. The safest option? Avoid any platform tied to the A7 network or any entity linked to Garantex or Grinex.

Can I still use USDT in Russia?

Technically, yes-but it’s risky. USDT is still used in Russia, but any wallet tied to sanctioned exchanges like Garantex or Grinex can be frozen. The U.S. Treasury has repeatedly used USDT’s centralized control to freeze funds. If you’re holding USDT, make sure it’s not connected to any blocked entity. Otherwise, your balance could disappear overnight.

What is the A7A5 token, and why was it created?

A7A5 is a ruble-backed stablecoin created by a Kyrgyzstani firm as a replacement for USDT after Garantex was shut down. It was designed to be more resistant to freezing because it’s not issued by a U.S.-based company. But since August 2025, OFAC has targeted the A7 network, and blockchain analysts like Elliptic now monitor A7A5 transactions. It’s no longer a safe workaround-it’s a sanctioned asset.

Are crypto exchanges still operating in Russia?

Most international exchanges block Russian users entirely. Domestic exchanges like Garantex and Grinex have been sanctioned and taken offline. Some smaller, unregulated platforms still operate, but they’re high-risk. Many have been hacked, shut down by authorities, or disappeared with users’ funds. There’s no trusted exchange left in Russia.

Can I get my money back if my crypto was frozen?

Almost certainly not. Once the U.S. Treasury freezes cryptocurrency tied to a sanctioned entity, recovery is nearly impossible. There’s no appeal process for private users. The only way funds are released is if the entire entity is removed from the sanctions list-which hasn’t happened to Garantex or Grinex, and isn’t expected.

Is using crypto in Russia illegal?

In Russia, using crypto isn’t illegal-but using it to bypass U.S. sanctions is. Russian law allows crypto ownership, but international sanctions override local rules. If your transactions link to a sanctioned exchange or wallet, you could face legal consequences abroad, including asset seizures or travel bans. The risk isn’t from Russia-it’s from the U.S. and its allies.

Tags: Russian sanctions crypto exchange restrictions Garantex Grinex A7A5 stablecoin OFAC sanctions