Sanctions haven't stopped Garantex: new exchange transfers have been recorded

Sanctioned Russian cryptocurrency exchange Garantex has reactivated its operations despite international sanctions and pressure from law enforcement. Blockchain analytics company Global Ledger has discovered new transfers confirming that Garantex has restored its system for payouts.

Russian Cryptocurrency Exchanges – Overview and Prospects

Cryptocurrency exchanges in Russia continue to thrive despite the challenging environment caused by sanctions and restrictions. Garantex, one such exchange, is demonstrating its ability to adapt and find ways to continue operations. While many companies are facing difficulties, Garantex is finding ways to circumvent restrictions and maintain its customer base.

Garantex's On-Chain Payout Architecture

New research from Global Ledger shows that Garantex, despite previously imposed sanctions and the seizure of its servers, continues to handle significant amounts of money. Researchers have discovered new wallets linked to Garantex on the Bitcoin and Ethereum networks, which collectively hold over $34 million in cryptocurrency. Of this amount, at least $25 million has already been paid to former users.

Confirmation of Operational Activity

The transactions recorded by analysts confirm that Garantex continues to operate despite international pressure. This suggests that the exchange has found ways to circumvent restrictions and continue providing services to its clients.

Money Flow Masking System

Global Ledger explains that Garantex uses a complex payout system designed to obscure its money flows. The exchange transfers its reserves to mixers like Tornado Cash, which obfuscate transactions to disguise their origin. This allows Garantex to conceal its activities from law enforcement and continue operating under sanctions pressure.

Funds are then routed through a number of cross-chain tools that facilitate asset transfers between different blockchains, including Ethereum, Optimism, and Arbitrum. Transfers are ultimately accumulated in aggregation wallets, from where funds are distributed to individual payout addresses.

Reserve Status

The investigation also revealed that the majority of Ethereum reserves remain untouched. Over 88% of the ETH stored in Garantex wallets was not used for payouts, indicating the presence of significant reserves for future operations.

In Conclusion

Thus, Garantex demonstrates its ability to adapt to challenging conditions and continue its operations despite sanctions and pressure from international organizations. Using modern technologies and camouflage techniques, the exchange was able to restore its operations and continues to provide services to its clients. This underscores the importance of flexibility and innovation in the cryptocurrency world, especially in times of instability and uncertainty.