Crypto Chaos: Tether’s $28 Million Freeze Leaves Russian Exchange in a Tizzy!

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Ah, Garantex! The Russian crypto exchange that seems to have found itself in a bit of a pickle, all thanks to Tether. Yes, you heard that right. Tether, the stablecoin that’s supposed to be as reliable as your grandma’s apple pie, has decided to freeze a whopping $28 million worth of USDT on this exchange. Talk about a frosty reception! ❄️

In a dramatic announcement on Telegram—because where else would you announce a financial crisis?—Garantex accused Tether of launching an all-out assault on the Russian crypto market. It’s like a soap opera, but with more digital currency and fewer dramatic pauses.

USDT Holders in Russia are At Risk

According to Garantex, the USDT stablecoins in user wallets are now at risk. Yes, you read that correctly. Those digital coins you thought were as safe as houses are now frozen solid. To add to the drama, Garantex has temporarily halted all operations. It’s like a game of musical chairs, but with wallets and no music.

Co-founder Sergey Mendeleev, who sounds like he should be giving TED Talks rather than running a crypto exchange, stated that this action disrupts Russia’s international trade conducted with digital assets. Because, of course, nothing says “international trade” quite like a frozen wallet.

“We temporarily suspend the provision of all services, including cryptocurrency findings, for a while while we are solving this problem with the whole team. We fight and don’t give up!” Garantex wrote on Telegram. Sounds like a motivational poster waiting to happen! 💪

But wait, there’s more! Mendeleev warned that this freeze is creating a veritable minefield for businesses and financial institutions that rely on crypto for international payments. It’s like trying to navigate a maze blindfolded—good luck with that!

Back in December, Russia’s Finance Minister confirmed that the country has been increasingly using Bitcoin and other cryptocurrencies for international trade amid sanctions. Because when the going gets tough, the tough get… well, crypto.

“While we discussed easing tensions and relaxing sanctions, we were deceived once again. Suddenly, the paradigm shifted: earlier, sanctions were merely glossed over, but now they block without trial or investigation. This is exactly the reality I have warned about for at least two years, yet neither the Central Bank nor the professional community listened,” — wrote Mendeleev. Sounds like a classic case of “I told you so!”

Mendeleev stressed that this disruption affects Russia’s economic engagements on a broader scale. Western sanctions have forced digital currencies to play a vital role in international settlements. And now, with this incident, it’s like throwing a wrench into the works of a well-oiled machine.

The exchange’s claim highlights the mounting regulatory pressure and a growing conflict between US authorities and market players operating in Russian jurisdictions. It’s like a geopolitical game of chess, but with more crypto and fewer pawns.

Garantex Sanction Explained

State Duma deputy Anton Gorelkin chimed in, pointing out that Tether’s decision reflects a broader trend of pressure applied by Western regulators on crypto infrastructure amid ongoing sanctions. It’s like watching a slow-motion train wreck, but with more spreadsheets.

Gorelkin noted that centralized stablecoins like USDT are particularly exposed to outside control. Despite the blockade, he expressed confidence that it’s impossible to completely shut down the Russian crypto market. Because, let’s face it, where there’s a will, there’s a way—especially in the world of crypto.

Garantex first encountered regulatory challenges back in April 2022. US authorities imposed sanctions following the intensification of the conflict between Russia and Ukraine. It’s like a bad sequel that no one asked for.

Officials charged the exchange with failing to comply with anti-money laundering and counter-terrorism financing rules. US agencies claimed that Garantex played a role in laundering over $100 million linked to hacker groups and dark web transactions. Because who doesn’t love a good money-laundering scandal?

In March of last year, law enforcement agencies from the US and UK began an investigation into Garantex, reviewing crypto transactions totaling more than $20 billion made using USDT. It’s like a financial thriller, but with more spreadsheets and fewer car chases.

This ongoing probe reflects the tensions between regulators and crypto operators in sanctioned environments. It’s a wild

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2025-03-06 19:35