A Crypto Exchange Shut Down? No Problem – Just Rebrand and Restart!
Imagine this: A crypto exchange gets caught laundering billions of dollars, gets sanctioned, and is forced to shut down. You’d think that would be the end, right? Wrong. The same people behind it secretly launch a new exchange with the same infrastructure, same customer funds, and even a new stablecoin to keep their operations going.
This is exactly what happened with Garantex, a Russian crypto exchange that was shut down by U.S. and European authorities. Now, it’s back under a new name: Grinex.
Let’s break it down so you can understand why this is such a big deal and how it impacts the crypto world.
Step 1: Garantex – A Shady Exchange with a Dark Past
Garantex was a cryptocurrency exchange based in Russia that had a bad reputation. It wasn’t just trading Bitcoin and Ethereum like Binance or Coinbase—it was allegedly helping criminals launder dirty money from ransomware attacks, darknet markets, and other illegal activities.
In 2019, the U.S. Treasury sanctioned it, meaning U.S. companies and citizens weren’t allowed to do business with it. But that didn’t stop Garantex. Instead, it kept running in the shadows, processing an insane $60 billion in transactions even after being sanctioned.
Then, in March 2025, authorities from the U.S., Germany, and Finland finally took action. They froze Garantex’s domains, blocked some of its assets, and Tether even froze $23 million worth of funds linked to the exchange.
Step 2: The Rebirth – Grinex Rises from the Ashes
You’d think this crackdown would be the end, right? Not even close.
A blockchain analytics firm called Global Ledger discovered that a new exchange named Grinex had suddenly appeared right after Garantex was shut down. Their investigation proved that Grinex is actually Garantex, just under a different name.
Here’s why they are basically the same thing:
- Same owners and operators – The people running Grinex are the same ones behind Garantex.
- Same infrastructure – Grinex is using the exact same technology and servers.
- Same customer funds – Garantex quietly moved its users’ money over to Grinex to keep it alive.
Not only that, but they also introduced a new ruble-backed stablecoin called A7A5, launched by a Russian bank’s payment platform. This stablecoin is being used on Grinex to help users bypass restrictions and continue trading.
Step 3: Why This Matters to the Crypto World
This event is a huge lesson in crypto regulation, crime, and government enforcement. Here’s why it’s so important:
1. Governments Are Fighting Back Against Crypto Crime
Regulators and law enforcement agencies are getting better at shutting down shady exchanges. The fact that they managed to freeze Garantex’s domains and funds shows that authorities are serious about cracking down on illicit crypto activities.
2. Crypto Criminals Are Getting Smarter
Despite sanctions and shutdowns, the people behind Garantex quickly launched Grinex. They know how to game the system, move funds around, and stay one step ahead. This means governments need to develop even stronger tools to track and shut down these operations.
3. The Role of Stablecoins in Sanctions Evasion
Grinex is using a ruble-backed stablecoin (A7A5) to keep transactions flowing despite being blacklisted. This highlights how stablecoins can be used to bypass regulations and move money around freely—which is exactly why governments are paying more attention to stablecoin regulations.
4. Crypto Users Must Be Careful
If you’re trading on an exchange that suddenly gets sanctioned or shut down, your funds could be at risk. This case shows how some exchanges might secretly move customer funds without their knowledge. That’s why choosing reputable, regulated platforms is crucial.
Final Thoughts: The Crypto War Between Governments and Criminals
What happened with Garantex and Grinex is part of a bigger battle between crypto regulators and criminals. On one side, governments are trying to prevent money laundering and illegal activities. On the other side, crypto criminals are finding new ways to stay alive, using stablecoins and rebranded exchanges.
For anyone in the crypto space, this is a wake-up call.
- Governments are taking regulation more seriously.
- Crypto criminals are evolving.
- Stablecoins could become a major battleground for future regulations.
If you’re investing, trading, or working in crypto, you need to stay ahead of these trends. Because in the fast-moving world of crypto, what’s illegal today might be reborn tomorrow under a new name.
