The US and the UK are currently reviewing more than $20 billion worth of USDT transactions that have passed through Garantex, a Russia-based crypto exchange, according to Bloomberg.
This investigation is part of the ongoing efforts by the allies to clamp down on sanctions evasion that has been supporting Russian President Vladimir Putin’s war in Ukraine.
Key points:
- The transactions under scrutiny were conducted using Tether (USDT).
- The US and UK sanctioned Garantex on suspicion of facilitating financial crimes and illicit transactions in Russia.
- The $20 billion USDT transactions would represent one of the biggest breaches of sanctions imposed on Russia since the start of the war.
- Tether froze assets of entities on the US sanctions list.
Read more: Sam Bankman-Fried Sentenced To 25 Years In Prison For FTX Fraud
The sources, who requested anonymity, stated that the US and UK sanctioned Garantex after the payments under investigation. Suspicions that the exchange was facilitating financial crimes and illicit transactions in Russia led to the imposition of the sanctions.
$20B USDT transactions would present one of the biggest breaches by Russia
The Biden administration has been working to put pressure on crypto exchanges like Garantex since the early days of the war. If confirmed, the $20 billion in transactions would represent one of the most significant breaches of the sanctions imposed on Russia since the conflict began.
However, the sources cautioned that the inquiries are ongoing and that it is too early to draw conclusions given the complexity of crypto transactions. They also noted that there was no immediate suggestion of wrongdoing by Tether.
Read more: $336.3M Lost In Crypto Hacks And Fraud In Q1 2024: Immunefi
In regards to inquiries regarding the US-UK investigation, Tether indicated that it has taken the action of freezing all assets associated with addresses on the US sanctions list. The company underscored the online nature of every action on Tether, the traceability of every transaction, the ability to seize assets, and their collaboration with law enforcement to achieve this goal.
