The U.S. Treasury Department has sanctioned crypto addresses linked to Russia’s Garantex, targeting funding operations for the Houthi group in its latest enforcement action.
The move demonstrates the increasing use of cryptocurrencies in illegal activities and the U.S. government’s resolve to stop funding the Houthis, who have been classified as terrorists by the United States and other countries.
What Will The Sanction Target?
The sanctions specifically target Garantex’s crypto addresses, which have been connected to helping the Houthis conduct transactions. The United States hopes to stop the flow of money that finances the group’s activities by enforcing these sanctions.
Additionally, the Treasury Department cautioned that anyone who keeps interacting with the targeted addresses may be subject to harsh consequences, such as being shut out of the American financial system.
This action is a component of a larger plan to stop Bitcoin from being used to finance terrorism and other illicit activities.
The pseudonymous character of cryptocurrency makes it a desirable instrument for organizations looking to avoid conventional financial regulation.
The United States aims to disrupt these financial networks and prevent the exploitation of digital currency for malicious purposes by focusing on important platforms such as Garantex.
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US Sanctions 6 Wallet Addresses
Six private wallet addresses and two deposit addresses connected to popular services have been sanctioned by the U.S. Treasury Department, according to blockchain forensic companies Chainalysis and TRM Labs.
The Houthi rebel group’s operations in Yemen and the larger Red Sea region were mostly funded by the almost $1 billion in illegal transactions involving these addresses.
The U.S. government hopes to stop financial assistance for the Houthis and hinder their use of cryptocurrency for illicit activities by enforcing sanctions against these addresses.
This measure emphasizes the fight against the use of digital money to finance terrorism.
Garantex’s Previous Sanctions
The cryptocurrency exchange Garantex was sanctioned by the U.S. Treasury Department in April 2022 for its involvement in facilitating money laundering and other illicit activities.
After being charged with managing transactions for ransomware groups, cybercriminals, and sanctioned businesses, the exchange became a significant player in the global illicit financial ecosystem.
Reports state that Garantex made it possible for customers to exchange substantial sums of Bitcoin linked to illicit activity, including funds taken from ransomware attacks, which need cryptocurrency payments to restore stolen data.
The exchange’s disdain for authorities and its failure to implement suitable anti-money laundering (AML) protocols raised concerns.
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