Shuttered Russian Crypto Exchange Garatex Rebrands as Grinex, Global Ledger found

Less than two weeks after international law enforcement authorities, the Garantex-a Russian crypto exchange, popular with ransomware gangs and parusa-evading oligarchs-allegedly increased from ashes, which again kept himself as Grinex.

According to a new report from the Swiss blockchain analytics firm Global Ledger, a killing on on and off-chain data indicates that Grinex is a direct successor to Garantex. Some liquidity from Garantex, including all Garatex holders of a ruble-back Stablecoin called A7A5, have been moved to Greenx-controlled wallets.

Global Ledger CEO Lex Fisun told CoinDesk that, in addition to on-chain data connecting Garantex to Grinex, there are many off-chain indications that the two exchanges are closely connected. Fisun pointed to Grinex’s rapid growth, which he said exceeding $ 40 million in volume in just two weeks, as well as a host of social media relationship between the two exchanges.

Although other major blockchain analytics companies, including TRM and chainalysis labs, have not yet confirmed the findings in the global ledger, national security leader Andrew Fierman told CoinDesk that he saw some indicators that Grinex was likely to be the Garatex rebrand.

Fierman pointed to a recent comment of the telegram from Sergey Mendeleev, one of Garatex’s original founders, announcing the creation of Grinex and claiming any similarities between the two exchanges were random – following two crying emojis laughs. Both Fierman and Fisun told CoinDesk that many Garatex users reports that go to Garatex and Middle East’s people’s offices in Europe and Middle East and transfer their crypto from Garantex to Grinex. Similarity also has the similarity to the two platforms interfaces.

Although the evidence is certainly engaging, Fierman said that until the chainalysis completed its analysis of Grinex’s infrastructure, it would not surely verify the accuracy of the global ledger report.

But, if Grinex is, in fact, a Garatex’s rebrand, this is not the first time a punished exchange has again shutdown. In 2017, the Russian Crypto exchange BTC-E was taken by the enforcement of American law, and subsequently rebranded as Wex. Wex soon even closed a year later because of the internal conflict and fighting of its remaining leadership. Similarly, Russian exchange Suex has been punished again as a Chatex, and subsequently punished again.

The problem with penalties

Garantex’s rapid regeneration shows the challenge of penalties, especially against criminal operations such as non-compliance, Darknet markets and ransomware gangs that can be simple morph to prevent discovery.

“Avoiding penalties will happen,” Fierson said. “Because if you are punished, you will not just accept that you can no longer perform any financial transactions. You will look to avoid discovering, however it may be, if it is by creating shell companies, creating new crypto wallets – and the bigger operation, and the more well -known, more technical advanced you need to be actually to do it.”

Feirson said this problem is not unique to crypto, but crypto-related penalties offer law enforcement a unique opportunity to follow the money after the penalties have been placed.

“The unique aspect of the blockchain is that it is transparent and irreversible, and what happens when a company closes is more examined,” Fierson said. “Many more to check on-chain. Garantex has been shut down, their tether holders are captured, but it does not prevent them from moving other properties. There is a chance to keep track of what will happen to post-official shutdown funds.”

A hydra-like network of potential alternatives

Whether Grinex is Garantex 2.0 or not, there are a number of other non -compliance Russian crypto exchanges that are eager and willing to take place.

Ari Redbal, Global Head of Policy and Government Affairs at the TRM Labs, told CoinDesk that it was simply “too early” to surely assess the relationship between Grinex and Garantex. “That is said, it is clear that other high-risk non-compliance will try to fill in the forbidden finances without Garantex’s left,” he added.

A recent client report from the TRM Labs named many possible successors, including Russian high-risk exchanges ABCEX and Keine-Exchange.

Garantex went down

Garantex was revoked by international law enforcement from the US, Germany and Finland in a joint operation earlier this month, taking its domain and server.

The US Treasury’s Foreign Asset Control (OFAC) Department of Foreign Asset Control (OFAC) first punished the exchange in 2022, accusing it of deliberately facilitating money losses for ransomware gangs such as Black Just and Conti, as well as Darknet markets such as Hydra.

According to court documents, Garantex’s client also includes the North Korean hacking state The Lazarus Group, which is behind the recent $ 1.4 billion bybit hack, as well as Russian oligarks who used the service to prevent sanctions after Russia’s invasion of Ukraine.

Two of Garantex operators, Lithuanian national and Russian resident Aleksej bescikov and Russian citizen and United Arab Emirates resident Aleksandr Mira Serda were charged with conspiracy money related to their work at Garatex. Besciokov was arrested While on vacation with his family in India earlier this month, and is expected to be temporarily in the US to deal with the charges.