American congressmen have acknowledged that sanctions against the Russian cryptocurrency exchange Garantex have not achieved their intended goals. In April 2022, the U.S. Office of Foreign Assets Control blacklisted Garantex for violations of anti-money laundering norms. According to American authorities, the exchange laundered over $100 million of illegally obtained funds.
Challenges with Sanctions
Despite the sanctions, congressmen Gabe Amo, Brad Sherman, and Jerry Connolly discovered that significant transactions were still being processed through Garantex. In their letter to Treasury Secretary Janet Yellen, the lawmakers reported that around $20 billion in Tether stablecoins had flowed through the trading platform. They believe that these transactions enable Russians to circumvent economic restrictions and fund military actions in Ukraine.
Request for Information
The congressmen requested information from Janet Yellen on the measures being taken to combat sanctions evasion and the role of Tether stablecoins in these processes. They expressed concern that the current sanctions have proven ineffective and proposed exploring additional tools to prevent the use of cryptocurrencies to violate restrictions.
New Strategies in Development
In response to the requests, American officials are planning to develop new strategies to ensure more effective control over cryptocurrency transactions and enhance measures to combat sanctions evasion.
