According to Bloomberg, authorities are investigating cryptocurrency transactions exceeding $20 billion linked to the Russian crypto exchange Garantex. These investigations are part of collaborative efforts by the United States and the United Kingdom to combat sanctions evasion, which is believed to be supporting Russia's military actions in Ukraine.

The scrutinized payments were reportedly conducted through the Moscow-based cryptocurrency exchange using the Tether (USDT) stablecoin. Sources reveal that these transfers occurred subsequent to Garantex facing sanctions from both the U.S. and the U.K. for allegedly facilitating financial crimes and illicit transactions within Russia.

Since the onset of the conflict in Ukraine, the Biden administration has been vigilant in targeting cryptocurrency exchanges like Garantex. The reported $20 billion in transactions potentially represents one of the most significant breaches of sanctions imposed on Russia since the conflict began.

The Office of Foreign Assets Control (OFAC) had previously sanctioned Garantex in April 2022, alongside the darknet marketplace Hydra, citing Russia as a haven for cybercriminals. OFAC highlighted Garantex's operation from the Federation Tower in Moscow City and its deliberate disregard for obligations to combat money laundering and terrorism financing.

In response to concerns over sanctions circumvention using cryptocurrencies, western countries have implemented stringent regulatory measures. The U.S. Treasury Department recently expanded its sanctions list in March to include 13 companies and two individuals associated with cryptocurrency trading.

Brian Nelson, the U.S. Treasury Undersecretary for Counterterrorism and Financial Intelligence, emphasized that Russia is increasingly resorting to alternative payment mechanisms to evade U.S. sanctions and sustain its military activities against Ukraine.