tl;dr
A U.S. sanctions on Garantex, a Russian crypto exchange, in 2023 initially appeared as a success for regulators. However, a TRM Labs report reveals that Garantex rebranded as Grinex and continued operating, sharing on-chain data and branding. This tactic has been replicated by other illicit exchan...
**Garantex’s Shadow: How Crypto’s Most Wanted Is Teaching the Underground Economy to Play Hide-and-Seek**
When the U.S. slapped sanctions on Garantex, Russia’s infamous crypto exchange, in 2023, it seemed like a major victory for regulators. But a new report from TRM Labs reveals a darker twist: Garantex didn’t vanish. Instead, it evolved—teaching a new generation of illicit actors how to outmaneuver the law.
**The Playbook of the Underground**
Garantex’s downfall was a textbook case of law enforcement cracking down on a high-risk exchange. But as TRM Labs’ analyst, Redbord, explains, “Illicit actors don’t just disappear—they adapt.” After its takedown, Garantex resurfaced as **Grinex**, a new entity sharing on-chain transactions, code, and even branding with its predecessor. This resurrection, experts say, was a masterclass in sanctions evasion.
The real alarm, however, lies in what came next. ABCex, a shuttered exchange linked to illicit gambling and terror financing, briefly closed after a DDoS attack. But it didn’t stay offline for long. A new platform, **AEXbit**, emerged with an identical user interface, raising red flags. TRM Labs suspects AEXbit is a rebrand of ABCex—just like Garantex became Grinex—designed to evade legal scrutiny.
**Money Laundering 2.0: The Stablecoin Angle**
The connections between these platforms aren’t just superficial. TRM Labs traced transactions in **A7A5**, a ruble-backed stablecoin from Kyrgyzstan, which acted as a bridge between Garantex/Grinex and ABCex/AEXbit. While the links aren’t direct, the patterns are eerily similar: shared infrastructure, jurisdictional arbitrage (moving operations to less-regulated regions), and the use of stablecoins to mask illicit flows.
“It doesn’t matter if AEXbit is directly tied to Garantex,” Redbord warns. “What matters is that the tactics are spreading.”
**A Race Against the Clock**
Cybersecurity experts are watching this evolution with growing concern. Criminals are learning from each other faster than regulators can respond. For example, AEXbit’s co-spending with a “clean” front company mirrors Garantex’s earlier strategies, suggesting a blueprint for laundering money while maintaining a veneer of legitimacy.
The stakes are high. If these tactics catch on, the crypto underworld could become even harder to track. As Redbord puts it, “Law enforcement and compliance teams must monitor behavior and infrastructure, not just names.”
**The Bigger Picture**
This isn’t just about Garantex—it’s a glimpse into the future of crypto crime. The underground economy is becoming more sophisticated, leveraging rebranding, code-sharing, and stablecoins to stay ahead of the law.
So, what’s next? Will regulators and compliance teams keep pace, or will the shadowy world of crypto exchanges continue to outmaneuver them? The answer might hinge on one question: Can the crypto community learn from these tactics—and use them to protect the innocent?
What do you think?