US $6M Reward and Sanctions Signal Major Risk for Garantex

I note the US State Department has posted a $6 million reward tied to the leadership of Russian crypto exchange Garantex, plus $5 million for an individual, amid allegations that the exchange laundered hundreds of millions of dollars. The US Treasury has re-added Garantex to its sanctions lists today.

I see this as a major escalation in enforcement risk that will materially disrupt the exchange’s operations, counterparty access and any related token liquidity. Market participants should expect delistings, frozen funds and heightened scrutiny.