Regulators in the US and the UK have launched an inspection of digital currency transactions on Russian platform Garantex worth more than $20 billion, Bloomberg sources report.
The inspection is aimed at eliminating potential violations of #sanctions when using cryptocurrencies through Garantex and the Tether USDT stablecoin pegged to the US dollar. All transactions were reportedly conducted after sanctions were imposed on Garantex by the #US and #UK, who suspected the platform of facilitating illegal financial activity in #Russia.
The ongoing investigation, attributed to the convoluted nature of cryptocurrency transactions, has not revealed the involvement of the stablecoin issuer in any of the alleged violations.
The text suggests that the Biden administration has been keeping a close eye on cryptocurrency exchanges such as Garantex amid the conflict, emphasizing that significant transactions worth $20 billion are in violation of the sanctions imposed against Russia. Notably, about 20% of the total market value of USDT, estimated at $104.5 billion, passed through Garantex, according to authorities.
In April 2022, the US Treasury Department penalized Garantex for disregarding protocols to combat #money laundering and imposed sanctions on its own. US authorities have uncovered alleged links between Garantex and illegal fund transfers, including those linked to Russian hacking group Konti.
Tether, responding to questions about the Garantex investigation, confirmed the freezing of assets of sanctioned entities. The company's proactive stance is consistent with its history of cooperation with US authorities, exemplified by significant asset freezes in the past.
