The United States and the United Kingdom are currently looking into cryptocurrency transactions exceeding $20 billion linked to the Russian platform Garantex. This investigation highlights the global challenge of enforcing sanctions amidst the Ukraine conflict. Specifically, the focus is on transactions involving Tether (USDT) processed through Garantex, a firm that faced sanctions in 2022.

The probe has been initiated due to suspicions that Garantex might have played a role in facilitating illicit financial operations within Russia. Despite international efforts to curb such activities, Russia has managed to circumvent financial sanctions using cryptocurrencies like Tether, showcasing the complexities of regulating the crypto space.

This scenario emphasizes the difficulty in tracking the origins and purposes of cryptocurrencies, given their inherently confidential nature. Garantex came under scrutiny for engaging in more than $100 million of illicit transactions, prompting action from the US Treasury following its relocation from Estonia to Moscow.

The investigation is now delving into the dual role of Tether within the cryptocurrency realm, as its user-friendly features present both opportunities for legitimate use and vulnerabilities to potential misuse.