Seized Crypto Exchange Garantex Demands Moscow Meetings

Sanctioned Russian cryptocurrency exchange Garantex is ordering customers to attend in-person meetings at its Moscow headquarters starting Monday to resolve blocked funds following a massive U.S.-led law enforcement takedown last week.

A Multi-Million Dollar Law Enforcement Takedown

The platform’s operations ground to a halt following a coordinated international crackdown. First, stablecoin issuer Tether blocked access to Garantex’s wallets, effectively freezing approximately $28 million in corporate assets. Simultaneously, an international law enforcement coalition spearheaded by the U.S. Secret Service seized Garantex’s official websites.

Garantex initially withheld details of the seizure from its users. Instead, the company announced on its official Telegram channels that it was temporarily suspending all operations, including cryptocurrency withdrawals.

The situation escalated when the U.S. Department of Justice unsealed charges against two of the platform’s administrators, Aleksej Besciokov and Aleksandr Mira Serda. Federal prosecutors accuse the duo of operating a money laundering haven for cybercriminals and terrorist organizations. The DOJ also confirmed the seizure of more than $26 million in Tether and Bitcoin, explaining the sudden freezing of the exchange’s digital wallets.

The Unusual ‘Face-to-Face’ Moscow Summon

In a surprising pivot, Garantex bypassed any mention of the federal crackdown and published an announcement claiming it had engineered a workaround for the frozen assets. The company invited users with positive balances to schedule a personal, face-to-face meeting at its physical office in Moscow.

According to the company’s update, these face-to-face meetings begin on Monday. Garantex is instructing users to bring the physical mobile device linked to their accounts along with active access to their registered email addresses, stating that staff will need to send and verify security confirmation codes on-site.

High Risks and Missing Guarantees for Users

This physical verification demand runs entirely counter to the privacy-centric ethos of the cryptocurrency market. Visiting the physical offices of an entity sanctioned by both the U.S. government and the European Union introduces severe security and legal risks for customers. Additionally, users face potential domestic exposure from Russian authorities, with no official guarantee that the cash-strapped exchange can actually fulfill any refund requests.

While the exact number of active Garantex users remains undisclosed, DOJ records indicate the exchange has facilitated over $96 billion in transaction volume since 2019. This massive transaction history suggests a global user base, many of whom reside far outside of traveling distance to Moscow.

Garantex did not respond to inquiries regarding how it plans to assist international users or secure the safety of those attending the physical meetings.