The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned Kyrgyzstani company Old Vector for its role in helping Russian-linked cryptocurrency exchange Garantex evade sanctions and continue facilitating illicit transactions.
Old Vector issued the A7A5 token, a ruble-backed digital asset used by Garantex to restore customer funds after law enforcement seized over $26mn in cryptocurrency on March 6, 2025. The token was designed for Russian clients of A7 Limited Liability Company (A7), a cross-border settlement platform tied to sanctioned Moldovan oligarch Ilan Mironovich Shor and sanctioned Russian bank Promsvyazbank PJSC.
According to OFAC, Old Vector worked with Garantex and other entities to develop and issue the A7A5 token, which became a key instrument for transferring value and resuming operations despite sanctions. The U.S. has also designated A7 and its subsidiaries A71 and A7 Agent for their involvement.
Part of a Wider Crackdown on Sanctions Evasion and Cybercrime
The Kyrgyzstani firm is one of several entities targeted in a broad action that re-designates Garantex and sanctions its successor, Grinex, along with three senior executives and multiple Russian-based companies.
Founded in Estonia in 2019 but primarily operating from Moscow and Saint Petersburg, Garantex has processed over $100mn in transactions linked to ransomware groups and darknet markets. The platform has facilitated payments for Russia-linked ransomware variants such as Conti, Black Basta, LockBit, NetWalker, and Phoenix Cryptolocker.
“Digital assets play a crucial role in global innovation and economic development, and the United States will not tolerate abuse of this industry to support cybercrime and sanctions evasion,” said John K. Hurley, Under Secretary for Terrorism and Financial Intelligence.
Garantex lost its Estonian license in February 2022 after regulators identified anti-money laundering failures and links to criminal wallets. That same year, OFAC sanctioned the exchange under Executive Order (E.O.) 14024 for operating in Russia’s financial services sector. The latest action adds designations under E.O. 13694, as amended, for materially assisting cyber-enabled threats to U.S. national security.
Shift to Grinex After Law Enforcement Disruption
On March 6, 2025, the U.S. Secret Service, working with German and Finnish authorities, seized Garantex’s domain and froze over $26mn in cryptocurrency. The next day, the Department of Justice unsealed indictments against executives Aleksandr Mira Serda and Aleksej Besciokov; Besciokov was later arrested in India.
Following these actions, Garantex moved customer funds and operations to Grinex, a newly created exchange whose promotional materials explicitly stated it was formed in response to sanctions and asset freezes. Grinex has since processed billions of dollars in cryptocurrency transactions and is now sanctioned under E.O. 13694, as amended.
Key Individuals and Partner Companies
Those sanctioned include:
- Sergey Mendeleev – Co-founder of Garantex.
- Aleksandr Mira Serda – Co-owner and Chief Commercial Officer.
- Pavel Karavatsky – Co-owner and Regional Director.
Two companies linked to Mendeleev were also designated:
- InDeFi Bank – A decentralized finance platform that enables purchases of virtual currency from Garantex.
- Exved – A payment platform that facilitates crypto-based trade between Russia and other countries, helping bypass sanctions.
OFAC also cited the role of prolific money launderer Ekaterina Zhdanova, sanctioned in November 2023, who exchanged over $2mn in Bitcoin for Tether (USDT) through Garantex.
The U.S. Department of State has announced two reward offers under the Transnational Organized Crime Rewards Program:
- Up to $5mn for information leading to the arrest and/or conviction of Aleksandr Mira Serda.
- Up to $1mn for information leading to the arrest and/or conviction of other key Garantex leaders.
Sanctions Implications
As a result of the designations, all property and interests in property of the sanctioned individuals and entities in the United States or controlled by U.S. persons are blocked. U.S. persons are generally prohibited from engaging in transactions with them, and violations can result in civil or criminal penalties.
The Treasury noted that this action builds on previous sanctions against illicit cryptocurrency exchanges, including SUEX, Chatex, Bitpapa, NetEx24, AWEX, Cryptex, and PM2BTC, as part of an ongoing campaign to protect the integrity of the digital asset sector.
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