Banned crypto exchange Garantex moves millions as it relaunches anew

The controversial cryptocurrency exchange Garantex, which was shut down for helping with illegal trades, is back with a new name: Grinex. The Swiss blockchain analytics company Global Ledger reports that Garantex has transferred millions of ruble-backed stablecoins to its new successor. This lets it keep running even though there are crackdowns around the world. This latest development makes me very worried about money laundering, gaps in the law, and the strength of illegal financial networks in the crypto business.

A Shadowy Transformation

Global Ledger’s research showed that Garantex and Grinex have a direct link on and off the blockchain. The company said that over $60 million in stablecoins backed by the ruble (A7A5) were cleaned by burning old coins and making new ones. Grinex also got Garantex’s liquidity, customer payments, and wallet addresses, which supports the idea that it is the real successor.

Onchain and Offchain Money Laundering Proof

Global Ledger results show precise on-chain data showing how illegal funds were moved. To clear up transaction histories, one-time-use wallets and addresses tied to Garantex were used. Offchain signs like transactional patterns, user behavior, and exchange activity also support the hidden links in the exchange. 

Significant Market Presence and Trade Volume

Even though Grinex is officially closed, it has quickly built up a significant trade turnover. By March 14, the market had received nearly $30 million in trades, and it now handles more than $68 million in trades every month. Crypto-tracking sites have already written about the platform and clarified that Grinex was made by the same people who made Garantex.

Regulatory Crackdown and Investigations

The government has been working hard to shut down Garantex’s activities. On March 6, the US Department of Justice, along with German and Finnish authorities, took over its domains. This shut down a platform that had allegedly handled more than $96 billion in illegal transactions since 2019. Also, Tether froze $27 million in USDT, which stopped Garantex from withdrawing. 

Conclusion

Even though regulators are acting, Garantex’s change into Grinex shows how hard it is to shut down illegal cryptocurrency platforms. The unclear change and ongoing flow of wealth show a deeply rooted financial network that uses blockchain privacy to avoid punishment.