Russian cryptocurrency exchange Garantex continues its services despite sanctions. Criminal groups and terrorist organizations benefit from this.
MOSCOW – Despite U.S. sanctions imposed to prevent Russian citizens from circumventing financial restrictions, cryptocurrency exchange Garantex remains a major conduit for money laundering. This is reported by Ukrainska Pravda and the Wall Street Journal, among others.
Garantex: Cybercriminals "launder" their money
The WSJ reported that the U.S. has imposed sanctions on Moscow-based cryptocurrency exchange Garantex. These were intended to prevent Russians from circumventing financial restrictions introduced after Russia's actions in Ukraine.
However, despite the sanctions, many Russians use Garantex to transfer money. Insiders confirmed this to the WSJ. According to the U.S. government, cybercriminals use Garantex to "launder" illicitly obtained money.
Serious Accusation: Financing Hamas Attacks
In addition, there are many indications that Palestinian fighters are co-financing their bloody attacks in Israel with the help of cryptocurrencies. "Digital wallets controlled by the Palestinian Islamic Jihad, which joined Hamas in the attacks, have received $93 million through Garantex," the report said.
In Russia, many people use Garantex to exchange the ruble for other currencies. They deposit a sum of money at the local offices and in return receive cryptocurrencies that they can convert into other currencies abroad. According to data platform Coinpaprika, Garantex recorded transactions of around $865 million in July – significantly more than before the sanctions.
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Cryptocurrencies: Always under suspicion
According to CNN reports, it is still unclear how much cryptocurrency Hamas has received. However, some indications point to considerable sums. As the Wall Street Journal previously reported, data from Dmitry Machikhin, CEO of crypto analysis software BitOK, showed that between 2020 and 2023, nearly $41 million went to crypto addresses attributed to Hamas and confiscated by Israeli entities. Another report by analyst firm Elliptic estimates that an additional $94 million is in the possession of Palestinian Islamic Jihad, a partner of Hamas. However, it remains uncertain how much of this can be directly attributed to the group.
According to Arda Akartuna, a researcher at Elliptic, Hamas and its al-Qassam Brigades are among the most successful collectors of cryptocurrency donations based on the amounts raised. Akartuna explained that monitoring and tracking cryptocurrencies has been made significantly more difficult because of "single-use" crypto addresses generated for each individual donor.