Not long ago, according to a Bloomberg report, a cryptocurrency transaction amounting to $20 billion USDT attracted international attention. This transaction was completed through Garantex, an exchange based in Russia, and the funds involved were primarily in the form of Tether (USDT). The US and UK governments are conducting in-depth investigations, suspecting that this may have violated financial sanctions against Russia.
Garantex: Dark Web’s Key Partner or Wall Street's Shadow Bank?
Garantex was established in Estonia in 2019 but operates primarily out of Moscow's luxurious Federation Tower. Despite being under sanctions by the US Treasury Department's Office of Foreign Assets Control (OFAC), Garantex continues its financial activities, particularly in the cryptocurrency realm.
However, some observers believe that Garantex is "Wall Street's shadow bank," or at least closely related to such institutions. Otherwise, such a massive transaction could not have circumvented the international settlement systems, especially since Tether has been openly regulated by the US government.
The Role of Tether (USDT): A Safe Haven Under American Scrutiny
The investigating parties stated that the cryptocurrency used in this transaction was Tether (USDT). Tether is a stablecoin pegged to the US dollar, favored by cryptocurrency investors for its relatively low volatility and commonly used as a "safe haven" in the global crypto market.
However, due to transparency issues with its issuer and its widespread use in the market, Tether itself often becomes a focus of regulatory scrutiny. The choice to use Tether in this massive transaction undoubtedly adds more suspicions to the situation. It also sparks further discussions on its role in international politics and financial strategies.
Tether officials have stated that they have frozen related accounts and are actively cooperating with the US and UK governments' investigations.
Who are the Major Players Behind the $20 Billion Garantex Transaction?
Although the specific parties involved in the transaction have not been disclosed, given the nature and amount of the transaction, it is reasonable to speculate that it could involve large international banks or private consortia with Russian domestic or government-backed financial institutions.
With the UK government also involved in this investigation, there is public speculation that the transaction is related to Russians in the UK, with rumors that Russians in Dubai were also involved: previously, Garantex’s technical founding partner died in a car accident in Dubai (though his family insists he was murdered), which makes the identities of the parties behind the scenes even more mysterious.
The movement of $20 billion is an endeavor only a state government or a wealthy consortium could undertake, raising suspicions that it could be a pro-Russian state or a mysterious consortium. Driven by personal gain or political motives, they dare to support their strategic partners by circumventing Western sanctions.
Another view suggests that international criminal organizations or dark web forces might be using the anonymity of cryptocurrencies to maneuver at the fringes of the international financial system for large-scale capital transfers. This is also a very plausible possibility: in 2022, Garantex was sanctioned by OFAC for aiding the dark web Hydra. At that time, Garantex was Hydra's most important partner, and it was even disclosed that a Garantex shareholder was also a Hydra shareholder.
In any case, the $20 billion went to Russia, tying all this directly to Russian money laundering. Russian individuals helping with this are spread globally, repeatedly striving for their homeland.
Financial Sanctions and the Hidden War of Cryptocurrencies
Against the backdrop of the Russo-Ukrainian War and the resulting international sanctions, cryptocurrencies have become a means for Russia to circumvent financial sanctions. This substantial transaction through the Garantex exchange is seen as a kind of tacit lifting of Western sanctions against Russia, reflecting Western concessions in interests in Ukraine and South Asia.
This $20 billion transaction is more than just a numbers game; it reflects the deeper dynamics of global finance, politics, and technology. As the role of cryptocurrencies in the international financial system becomes more significant, such transactions may appear more frequently in public view, also pushing the legal and moral boundaries of cryptocurrencies into new realms of discussion.
Kikyo
Alex
Coindesk
cryptopotato
Cointelegraph