Main Points :
- Garantex, a Russian crypto exchange deeply involved in ransomware transactions, has been sanctioned again.
- Its successor, Grinex, launched ahead of enforcement actions and swiftly absorbed Garantex’s user base.
- A7A5, a ruble‑pegged stablecoin, has emerged as a primary vehicle for cross‑border payments and sanctions evasion.
- Chainalysis reports A7A5 has processed over $51 billion in volume; Elliptic notes daily transfers exceeding $1 billion.
- The network is tied to sanctioned entities and figures like Promsvyazbank and Moldovan fugitive Ilan Shor.
- The US strengthened its response with broader sanctions to disrupt these evolving illicit financial systems.
1. Garantex’s Continued Illicit Role
Founded in 2019 in Moscow’s Federation Tower, Garantex served as a pivotal conduit for cybercriminal finance—facilitating ransomware gangs like Conti, NetWalker, LockBit, Hydra, Ryuk, and Phoenix to launder over $100 million in illicit proceeds. Despite earlier sanctions in 2022, Garantex persisted until a multi‑national enforcement, culminating in a domain seizure and arrest of one founder in India in March 2025.
2. Grinex: The Replacement Engine
Grinex emerged almost immediately. Incorporated in December 2024, it was apparently a contingency plan prepared well before Garantex’s takedown. Within days of the enforcement action, Telegram promotions guided Garantex users to Grinex, whose interface and operations closely mirrored its predecessor. OFAC officially sanctioned Grinex for continuing to enable illicit crypto activity.
3. A7A5 Stablecoin: A New Weapon in Sanctions Evasion
The A7A5 stablecoin—pegged 1:1 to the Russian ruble—was introduced as a vehicle for users to recover and transfer frozen funds. Issued by Old Vector, a Kyrgyzstan‑based entity tied to sanctioned Russian Promsvyazbank and Moldovan fugitive Ilan Shor, A7A5 rapidly became a central tool in avoidance of sanctions.
4. Staggering Transaction Volumes and Market Penetration
According to Chainalysis, A7A5 has processed over $51.17 billion in total transaction volume since inception, primarily facilitated through Grinex. Elliptic adds that the stablecoin sees over $1 billion transferred daily, with market cap tripling in a matter of weeks and exchange volume surpassing $8.5 billion. The Financial Times frames A7A5’s four‑month trajectory: $9.3 billion transacted, despite a modest market cap—offering a shadow payment infrastructure beyond Western control.
Insert graph here showing A7A5 transaction volume over time and comparative market cap trends.
5. Shadow Economy Built with Crypto Tools
Chainalysis emphasizes that A7A5 and Grinex are cornerstones in Russia’s emerging crypto‑based shadow economy—designed to bypass international financial sanctions and preserve economic ties with markets in Asia and Central Asia. Transactions are concentrated during weekdays, indicating institutional or business‑level usage. As noted in The Hacker News, the OFAC sanctions came not only with asset freezes but included six company directors and several affiliated firms, emphasizing scale and coordinated structure.
6. U.S. Enforcement Response
In August 2025, OFAC expanded its sanctions to include Garantex, Grinex, the A7A5 token issuers (A7 LLC and affiliates), and individuals such as Sergey Mendeleev, Aleksandr Mira Serda, and Pavel Karavatsky. The U.S. Department of State offered rewards for information leading to arrests. The move was described as necessary not just for disrupting specific platforms, but to dismantle evolving systemic methods of illicit and sanctioned Russian financial operations.
7. Implications for Crypto Seekers and Practitioners
For crypto investors and blockchain professionals seeking new opportunities, this episode is a reminder:
- Fiat‑pegged tokens, especially those emerging from opaque jurisdictions, may harbor geopolitical or illicit intent.
- Regulatory scrutiny can arise swiftly; due diligence must extend beyond code and into governance, provenance, and affiliations.
- The A7A5‑Grinex‑Garantex saga illustrates the evolving interplay between sanctions, decentralized finance, and state‑aligned actors.
Conclusion
The saga of Garantex, Grinex, and the A7A5 stablecoin illustrates a rapidly evolving frontier in crypto‑enabled sanctions evasion. These actors deployed sophisticated contingency planning, state‑linked token issuance, and fast‑moving infrastructure to subvert international financial controls. Yet, the swift and coordinated global response underscores the resolve and growing reach of authorities. For blockchain professionals and seekers of legitimate innovation, the lesson is clear: transparency, robust compliance, and keen awareness of geopolitical risk are vital to sustaining credibility and staying ahead of illicit misuse.
