Shuttered Russian Crypto Exchange Garantex Rebrands as Grinex, Global Ledger Finds
Garantex, a notorious Russian cryptocurrency exchange known for its connections to ransomware groups and the illicit activities of oligarchs, has reportedly resurfaced under a new guise less than two weeks after law enforcement actions dismantled its operations. The newly branded exchange, named Grinex, has elicited scrutiny from blockchain analysts who suggest it is a direct successor to Garantex.
A comprehensive report from Swiss blockchain analytics firm Global Ledger indicates substantial on-chain and off-chain evidence linking Grinex to Garantex. Notably, liquidity previously held by Garantex—including its ruble-backed stablecoin holdings—has already been transferred to wallets controlled by Grinex. Lex Fisun, CEO of Global Ledger, highlighted the exchange’s swift growth, with Grinex reportedly exceeding $40 million in trading volume within its first two weeks of operation, alongside clear social media ties to its predecessor.
Chainalysis’ Andrew Fierman added weight to Global Ledger’s report, noting he has encountered several indicators suggesting Grinex is indeed a rebrand of Garantex. A comment from Sergey Mendeleev, a founder of Garantex, where he playfully dismissed any similarity between the platforms while accompanied by laughing emojis, has raised further eyebrows. Additionally, there have been firsthand accounts of users migrating their assets from the shuttered Garantex to Grinex, and reports of significant similarities in their user interfaces.
However, until Chainalysis completes its infrastructure assessment of Grinex, the connection remains circumstantial. Historically, such rebrands are not unprecedented within the cryptocurrency space. Garantex’s situation echoes the fate of BTC-E, which rebranded as WEX after being shut down by U.S. authorities in 2017, but ultimately failed due to internal conflicts. Similarly, the exchange Suex attempted a rebranding to Chatex, which also fell under renewed scrutiny.
The emergence of Grinex also underscores the significant challenges faced by regulatory efforts aimed at enforcing sanctions, particularly against decentralized and non-compliant exchanges that can readily adapt to regulatory pressure. As Fierman articulated, sanctions evasion is almost expected, as those affected work to circumvent restrictions by creating new identities, wallets, or even companies to obscure their operations. The blockchain’s inherent transparency allows authorities to trace illicit activities and movements post-sanction—an opportunity that could illuminate the trails left by the likes of Garantex.
Despite the potential for monitoring operations through blockchain technology, the evolution of exchanges such as Grinex exemplifies the persistent challenge of regulatory oversight in the cryptocurrency landscape. Redbord from TRM Labs noted that while it’s still early to draw definitive conclusions about Grinex, it remains evident that various non-compliant exchanges are poised to capitalize on the void left by Garantex’s demise.
Law enforcement’s recent takedown of Garantex was a collaborative effort among agencies in the U.S., Germany, and Finland, marking a significant move in the fight against financial crime linked to cryptocurrency. The U.S. Treasury had previously sanctioned Garantex in 2022 for facilitating money laundering, including activities related to renowned ransomware groups and even state-sponsored hacking entities like North Korea’s Lazarus Group. The grim underbelly of its operations came into full view with legal actions against key operators, who face serious charges of conspiracy to launder money.
As the cryptocurrency sphere continues to evolve, the rapid rebranding of exchanges like Garantex into Grinex raises critical questions about the efficacy of international regulatory frameworks and their ability to stay one step ahead of crypto’s dark alleys.
