The US Secret Service, in collaboration with a coalition of international law enforcement agencies, has seized the website of Garantex, a Russian cryptocurrency exchange suspected of being associated with darknet markets and ransomware hackers. The exchange's domain was replaced with a notice stating that it has been seized by the Secret Service following a warrant issued by the US Attorney's Office for the Eastern District of Virginia.

This move marks the latest action taken by Western governments against the Moscow-based exchange. Last month, the European Union sanctioned Garantex, citing its close association with EU-sanctioned Russian banks. This was part of a package of sanctions imposed on Russia in response to its invasion of Ukraine.

In 2022, the US Treasury sanctioned Garantex, alleging that over $100 million in transactions conducted on the exchange were linked to illicit actors and darknet markets, including the notorious Russian ransomware gang Conti and the darknet market Hydra. The takedown notice revealed that the operation was conducted in coordination with the US Department of Justice, the Federal Bureau of Investigation, Europol, and several other international law enforcement agencies.

Despite reaching out to all involved organizations for comment, only the FBI responded, declining to provide any information. Garantex also failed to respond to messages sent via its official email addresses and Telegram account. The website seizure notice was verified by analyzing Garantex's internet-facing domain records, which now point to servers controlled by the Secret Service.

In the aftermath of the seizure, Garantex announced that it was suspending all services, including cryptocurrency withdrawals, without mentioning the law enforcement operation in its official Telegram channels. This decision came after stablecoin issuer Tether froze $28 million worth of its cryptocurrency on Garantex. The exchange expressed its determination to "fight" and not give up, warning users that all Tether in Russian wallets was currently under threat.

The seizure of Garantex's website highlights the ongoing efforts of Western governments to disrupt the activities of cryptocurrency exchanges suspected of facilitating illegal transactions and supporting malicious actors. As the global cryptocurrency landscape continues to evolve, this move is likely to have significant implications for the industry, particularly in the context of the ongoing conflict between Russia and Ukraine.

The coordinated international effort to take down Garantex demonstrates the growing recognition of the need for cross-border cooperation in combating cybercrime and illicit activities. As law enforcement agencies increasingly focus on cryptocurrency exchanges, it remains to be seen how these actions will impact the broader cryptocurrency market and the efforts to promote greater transparency and accountability within the industry.