Russia and the crypto ecosystem adapt to sanctions (2025)

After nearly 4 years of war, Western financial sanctions did not paralyze the flow of Russian money but forced it to transform. In 2025, on-chain data showed that Russia had built a parallel crypto payment ecosystem, flexible enough to survive freezes and controls.

The initial signs did not come from crime, but from trade: cross-border goods payments, imports of sensitive items, money transfers outside of banks. OTC desks in Russia surged, accepting domestic rubles and then issuing stablecoins/crypto to transfer abroad, especially through Asia.

At the center of the system is Garantex. Despite being sanctioned, this exchange continued to operate for several months. When the infrastructure was seized (03/2025), thousands of ETH were quickly gathered and sent through Tornado Cash to erase traces. BTC wallets that had been “dormant” since 2022 also began to move, indicating the treasury was still under control.

Almost immediately, Grinex emerged as a successor. The flow of USDT through TRON showed a clear continuation, with many users seeing assets “reappear” under new names. By 07/2025, at least 25 million USD in crypto had been returned, most of the reserves still untouched.

The issue is not a lack of sanctions, but the speed. While regulators need weeks, the crypto system only takes a few hours to pivot. This is not the collapse of an exchange, but the evolution of an entire underground financial system. #btc #ETH