Elliptic uncloaks $600 billion in illegal Garantex transactions, helping us

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The US Secret Service, supported by blockchain analytics firm Elliptic, has dismantled the approved Russian cryptocurrency exchange Garantex and frozen a $26 million crypto procedure, authorities announced Friday.

With the assistance of Elliptic, the US Secret Service will dismantle the authorized Russian crypto exchange Garantex

Elliptic data reveals that Garantex has executed more than $60 billion in transactions as the US and the EU imposed sanctions in April 2022 for laundry funds related to ransomware, Darknet Markets and North Korea’s cyberattacks. Despite efforts to hide the wallet infrastructure, Elliptic’s report alleges that Garantex’s total transaction exceeded $96 billion.

The blockchain surveillance company explained that crypto exchanges quickly generate new wallet addresses and employ specific privacy tools to avoid detection. Elliptic has developed its own analysis to identify Garantex-controlled wallets that reveal primarily transactions in Stablecoin USDT issued on the Tron blockchain.

This methodology enabled real-time sanctions screening for clients and investigators. Garantex is said to have washed codes from prominent crimes, including $30 million from North Korea’s Lazarus Group-Linked Horizon Bridge Hack and $30 million from funds related to ransomware groups Conti, Lockbit and Black Basta. Elliptic’s tracing tool also reportedly promoted tens of millions of people in trading in the darknet market.

The US Department of Justice (DOJ) cited Elliptic’s intelligence in the indictment highlighting the role of Galantex in supporting Russian oligarchs and illegal actors. The takedown highlights the role of fraudulent exchanges in global crime financing and follows recent cases such as the $1.4 billion Bibit theft.

Elliptic highlights the technical arms race between bad actors and compliance companies, and focuses on other authorized entities that now mimic Garantex’s tactics. The company insists that the tool will be integrated into Crypto Business’s compliance program and flag illegal transactions. Elliptic news follows Garantex, Exchange Halting Operations and Tethers that freeze millions of USDTs that are seized by the US government.