Japan Freezes Garantex Assets and Bars Transactions With 32 Other Russia-Linked Entities

Japan’s Ministry of Foreign Affairs, Ministry of Finance, and Ministry of Economy, Trade and Industry have frozen the assets of Garantex, 32 other organizations, and nine individuals. For high-risk payment flows, the practical point is simple: Japanese companies and users are now prohibited from making payments or transactions involving any sanctioned party.

1. Garantex is on the list, alongside entities such as “Alabuga” and “Uraldronzavod,” plus nine individuals described by Japanese authorities as managers from the military-industrial complex and fintech sectors. Japan says all of them are linked to Russia.
2. The measure goes beyond an asset freeze. Japanese companies and users are explicitly banned from payments and transactions involving the sanctioned persons and entities, which matters for PSPs, acquirers, and banks touching Japanese counterparties or payment rails.
3. Garantex was already hit in August last year by blocking sanctions from the US, the EU, and other jurisdictions. At the time, the crypto exchange was accused of helping Russian authorities and organizations bypass financial restrictions.
4. The US Treasury also sanctioned Grinex, described as Garantex’s successor exchange. The same round also targeted Exved CEO and Telegram channel creator Sergey Mendeleev, who was designated together with Garantex commercial director Alexander Mira Serda.
5. TRM Labs said Garantex had prepared a network of successor platforms in advance and split customers and payment infrastructure across them, which helped minimize the impact of the US sanctions.

In May, Garantex co-founder Mendeleev was also placed under UK sanctions for participating in “supporting the Russian authorities through business activity.” The businesses named there were Exved and Independent Decentralized Finance Smartbank and Ecosystem (Indefibank); Mendeleev told Bits.media that Indefibank “exists only in [his] head” and has not operated since 2020, while Exved does not process transactions and has no legal entity.