US Sanctions 8 Crypto Wallets Associated with Garantex, Houthis

US Treasury Sanctions Crypto Wallets for Terror Financing

The United States Treasury Department has sanctioned eight cryptocurrency wallet addresses associated with the Russian crypto exchange Garantex and the Houthi organization.

OFAC Sanctions Crypto Addresses with Terror Links

The Office of Foreign Assets Control (OFAC) sanctioned the wallets following forensic evidence provided by Chainalysis and TRM Labs connecting them to illicit activities. Two of the listed addresses are associated with significant cryptocurrency platforms, whereas the other six are privately owned wallets.

Russia, Terrorism, and Money Laundering

The wallets in question allegedly handled close to $1 billion in transactions associated with sanctioned parties. Much of these funds was utilized to finance Houthi activities in Yemen and the Red Sea area.

Slava Demchuk, an expert in crypto-based money laundering and a United Nations Office on Drugs and Crime (UNODC) consultant, had this to say about the situation:

"The addition of Houthi-associated wallets is a sign of increasing acknowledgment of crypto's geopolitical conflict and terrorism financing role."

He added:

"The consequences are enormous — compliance regimes need to adapt quickly, attribution activities will grow, and decentralized platforms will be subject to increased scrutiny."

Demchuk stressed that crypto assets are now squarely in the international security sphere.

Who Are the Houthis?

The Houthis, or Ansar Allah, are a Yemeni political and militant movement that emerged from the Zaidi Shia community. Originally a revivalist movement, they have since become a significant player in Yemen's current conflict.

In recent years, the Houthis have launched missile and drone attacks on both military and civilian ships in the Red Sea.

In January 2024, the US former President Donald Trump added the Houthis as a foreign terrorist organization (FTO) after stating that their actions are threats to:

American civilians and Middle Eastern personnel

Crucial regional allies

Global maritime trade stability

After heightened Houthi attacks, the US attacked the group with a military strike.

Garantex: Russia's Crypto Laundromat

The Russian cryptocurrency exchange Garantex was sanctioned and closed in early March, after allegations of money laundering.

At the time, Tether—the issuer of the stablecoin USDt—froze $27 million in USDt on the platform, resulting in the suspension of its operations.

Nevertheless, Garantex has allegedly continued to transfer millions of dollars in an effort to restart under a new brand, "Grinex."

Arrest of Garantex Founder

In mid-March, Lithuanian national Aleksej Bešciokov was arrested by India's Central Bureau of Investigation (CBI) on charges of operating Garantex.

The US authorities charged Bešciokov with:

Conspiracy to commit money laundering

Conducting an unlicensed money-transmitting operation

Evading the International Emergency Economic Powers Act (IEEPA)

The case marks the growing global crackdown against illegal cryptocurrency operations and their connection to sanctioned entities.

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