Allegedly regenerating under a new name, Garantex - a sanctioned Russian digital asset exchange - is under suspicion for rebranding as Grinex.
Breaking Down the Crypto Scene
Shuttered Russian exchange Garantex has reemerged under a new guise - Grinex. UK-based blockchain intelligence firm TRM Labs, in its analysis, has discovered this connection.
Garantex, before its dismantling by international enforcement agencies, handled a staggering $100 billion in transactions. And it appears that Grinex has been onboarding Garantex users, redistributing their assets in the form of A7A5, a ruble-pegged stablecoin available on Tron and Ethereum.
Analysis from TRM Labs suggests that the sanctioned exchange was aware it was at risk of being shut down, and the creation of A7A5 was a means of evading sanctions and enabling its users to recover any assets that could end up being lost in the event of a takedown.
On-chain analysis reveals that large volumes of transfers involving A7A5 were made in January, in the weeks leading up to the U.S.-led enforcement action that dismantled Garantex. Intriguingly, TRM also indicates that Garantex's Telegram channels began promoting Grinex only a matter of days after it was taken down, with the new exchange registered in Kyrgyzstan on December 23, 2024.
The individuals involved in the registration of Grinex and A7A5 remain unidentified, with no evident or formal link to Garantex. Yet for TRM, the obscurity of these entities adds "another layer of ambiguity to Grinex's origins."
One identifier is the striking resemblance between Grinex's user interface and Garantex's. The platform has announced an agreement to onboard its former customers and even hire its employees. Intermediary addresses, which are associated with the transfer of funds out of Garantex, were used to deposit funds (mostly in A7A) into Grinex client addresses.
Analysts at Chainalysis are leaning towards the belief that Grinex may just be the rebrand of Garantex, despite not being ready to make a formal attribution.
This apparent resurrection of Garantex, alongside the increased activity on Russia-linked exchanges ABCEX and Rapira, raises questions about the effectiveness of sanctions in eliminating illicit cryptocurrency operations. These concern, as analysts assert, how sanctioned entities continue to find ways to circumvent restrictions and stay operational.
- Grinex, the supposed new face of shuttered Russian exchange Garantex, is under the scrutiny of UK-based blockchain intelligence firm TRM Labs.
- Garantex, prior to its dismantling, handled transactions worth an astounding $100 billion, and it seems Grinex is absorbing Garantex users, distributing their assets as A7A5, a stablecoin tied to the ruble available on Tron and Ethereum.
- TRM Labs' analysis suggests that Garantex, aware of the impending risk of being shut down, created A7A5 as a means to evade sanctions and allow users to recover potentially lost assets.
- Large volumes of A7A5 transfers were detected in January, in the run-up to the U.S.-led enforcement action that dismantled Garantex.
- TRM Labs has pointed out that Garantex's Telegram channels started promoting Grinex shortly after the former was taken down, with the new exchange registered in Kyrgyzstan on December 23, 2024.
- The individuals behind Grinex and A7A5 remain unidentified, with no clear or formal connection to Garantex.
- The striking resemblance between Grinex's user interface and Garantex's and the hiring of Garantex employees by Grinex add to the mystery surrounding Grinex's origins.
- Analysts at Chainalysis are leaning towards the theory that Grinex might be nothing more than a rebrand of Garantex, albeit not ready to make an official attribution.
- The re-emergence of Garantex as Grinex, coupled with increased activity on allies ABCEX and Rapira, fuels questions about the efficiency of sanctions in eradicating illicit cryptocurrency activities.
- These concerns revolve around the persistence of sanctioned entities in finding ways to work around restrictions and remain functional within the cryptocurrency and finance industry.
- The ongoing developments in the cryptocurrency business, including this case, are indicative of the dynamic and adaptive nature of the industry, as it continues to evolve in conjunction with technology advancements.
