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The U.S. Treasury Department has announced sanctions on cryptocurrency addresses linked to Russia’s Garantex as part of its ongoing efforts to curb illicit funding operations associated with Yemen’s Houthi movement. The measures target financial activities that facilitate arms procurement and sanctions evasion.

Sanctioned Crypto Addresses

The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury has sanctioned eight cryptocurrency addresses tied to the Houthi foreign terrorist organization. These include six private wallet addresses and two deposit addresses on mainstream platforms. Blockchain forensic analysis indicates that nearly $1 billion in illicit transactions were processed through these addresses, primarily supporting activities in Yemen and the broader Red Sea region.

Funds Linked to Garantex

On-chain data reveals that the Houthis moved over $45 million through Garantex, a Russia-based cryptocurrency exchange flagged by OFAC for its involvement in terrorist financing. Garantex was previously sanctioned for facilitating high-risk transactions that violate global financial regulations.

Developments Surrounding Garantex

Earlier this year, Garantex announced its closure following the blacklisting of nearly $30 million in stablecoins by Tether. Shortly afterward, Indian authorities arrested Aleksej Besciokov, co-founder of Garantex, based on an arrest warrant issued by the Patiala House Court in New Delhi. However, reports suggest that Garantex has resurfaced under the name Grinex after transferring funds and users to the new platform.

Connections to Other Sanctioned Entities

On-chain analysis by TRM Labs highlights significant transaction volumes flowing to high-risk entities sanctioned by OFAC. Among them are Garantex and Sa’id al-Jamal, an Iran-based financial facilitator affiliated with both the Houthis and the Islamic Revolutionary Guard Corps-Qods Force.

Designation of the Houthis as a Foreign Terrorist Organization

In January, the U.S. re-designated Yemen’s Houthi movement, formally known as Ansar Allah, as a foreign terrorist organization. The designation underscores the group’s activities that threaten regional stability and maritime trade. U.S. officials emphasized the importance of addressing these threats to protect American civilians and allies in the Middle East.

Key Takeaways for Crypto Investors

For cryptocurrency enthusiasts and investors, this development sheds light on the importance of understanding regulatory measures and the risks associated with high-risk platforms. Here are some tips to stay informed and safeguard your investments:

  • Research Exchanges: Always use reputable and compliant cryptocurrency exchanges.
  • Monitor Sanctions: Stay updated on global sanctions targeting crypto platforms and addresses.
  • Verify Wallets: Avoid transacting with wallets flagged for illicit activities.
  • Utilize Blockchain Analysis Tools: Consider using services that provide insights into wallet histories and transactions.

The increasing use of cryptocurrencies for illicit purposes highlights the need for vigilance in the evolving landscape of digital finance.

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