Garantex breaks crypto norms: Show up in person for withdrawals
Russian crypto exchange Garantex faced significant challenges this past week after stablecoin issuer Tether blocked access to its wallets, containing approximately $28 million, and the U.S. Secret Service seized its official websites during a coordinated law enforcement operation.
On Thursday, Garantex announced the suspension of all services, including cryptocurrency withdrawals, without mentioning the law enforcement actions in its official Telegram channels. The following day, the U.S. Justice Department charged two Garantex administrators, Aleksej Besciokov and Aleksandr Mira Serda, with facilitating money laundering for cybercriminals and terrorists. U.S. prosecutors also froze over $26 million in Tether and Bitcoin linked to these activities, clarifying the Tether wallet situation.
On Saturday, Garantex sought to reassure customers by inviting those with positive account balances to a personal meeting at its Moscow office. The announcement, made via Telegram, did not reference the law enforcement actions, instead stating that the company had developed a solution for blocked assets. The meetings are set to begin on Monday, with Garantex asking customers to bring their linked phones and email access for sending confirmation codes.
Below is the translated message:
“Dear clients,
We have developed a solution for blocked assets and invite users with a positive balance on their accounts to meet in person at our Moscow office, located at: Moscow City, Presnenskaya Naberezhnaya 12, Federation Tower East, 14th floor.
You can submit your request only through our official bot – Garantex | Official Bot (@Garantex_Meeting_Bot).
Id: 7592121511, please forward the message to the bot @userinfobot for verification.
Please note that in order to confirm the meeting, you will need to provide identification details: Full name of the account holder, Email address registered on the exchange, Phone number associated with the account.
Attention: we do not ask for the passwords to your accounts. We do not offer paid services for asset recovery or withdrawal of funds.
After submitting your request through the YClients service, please send a screenshot of your request, the email address associated with your exchange account, and the full name of the account holder to technical support (@garantexbot).
If incorrect information is provided in your application, duplicates are created, or if you have a zero balance, we will be forced to CANCEL the appointment.
The Garantex team”
This request for face-to-face meetings is notable in a sector that typically prioritizes anonymity. Customers face potential risks by visiting the office of a company under sanctions from both the U.S. government and the European Union, along with uncertainties regarding Garantex’s ability to refund customer funds. It remains unclear how many customers are affected, but Garantex has processed over $96 billion in cryptocurrency transactions since its inception in 2019, suggesting a substantial customer base, many of whom may not reside near Moscow.
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