The stablecoin issuer Tether has taken decisive action by freezing USDT funds, leading to a temporary shutdown of the Russian crypto exchange Garantex’s operations. This measure has disrupted the platform’s services, including the ability to make withdrawals, as its website now undergoes scheduled maintenance.
According to an announcement made on March 6 via the exchange’s official communication channels, the frozen funds amounted to USDT valued at approximately $27 million. The exchange has temporarily halted its services while ensuring that its technical infrastructure receives the necessary support.
Context and Regulatory Pressure
The latest move by Tether arrives shortly after the implementation of new sanctions targeting Garantex by the European Union. These sanctions are part of broader actions taken by Western authorities against Russia amid the ongoing conflict in Ukraine. In a parallel development, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) had already imposed restrictions on the exchange in April 2022.
In its advisory, Garantex warned its customers about the heightened risk to all USDT held in Russian wallets. This advisory underlines the serious repercussions of the recent measures and the exchange’s commitment to comply with international regulatory mandates.
Operational Background and Market Impact
Established in late 2019, Garantex was originally registered in Estonia but conducts most of its operations from Moscow and Saint Petersburg. Despite not featuring on several major crypto data platforms, reports indicate that the exchange has experienced substantial growth in trading activity over the past few years. Recent figures reveal a significant increase in daily trading volumes, reaching impressive milestones in early March 2025.
Even though Tether’s decision may not drastically affect the global cryptocurrency market, it has certainly captured the attention of local regulators and industry stakeholders in Russia. Many local policymakers believe that this could be among the early signs of intensified Western measures aimed at putting pressure on the crypto sector. Nonetheless, officials contend that a complete shutdown of the Russian crypto market remains unlikely.
This unfolding situation serves as a critical reminder of the ongoing tensions between regulatory authorities and the crypto industry, especially in the current geopolitical climate. With financial controls tightening, market participants are now urged to stay informed about similar developments as they continue to navigate an increasingly complex regulatory landscape.
Maxwell Reed is the first editor of Cryptovista360. He loves technology and finance, which led him to crypto. With a background in computer science and journalism, he simplifies digital currency complexities with storytelling and humor. Maxwell began following crypto early, staying updated with blockchain trends. He enjoys coffee, exploring tech, and discussing finance’s future. His motto: “Stay curious and keep learning.” Enjoy the journey with us!