Kyrgyzstan’s rapid crypto extension has evaded Moscow’s sanctions, with analysts at blockchain forensics firm TRM Lab claiming that Russian actors will use shell crypto exchanges registered with Bishkek to “source double-use items from the beginning of the war in Ukraine.”
In a recent blog post, analysts noted that many cryptographic providers registered with Kyrgyzstan exhibit the characteristics of classic shell companies, including addresses for the same apartment, recycled founders and even copy-powered emails.
Additionally, some of these Kyrgyz exchanges blacklisted Russian crypto exchanges in March 2025, authorized by the US Treasury to avert sanctions and promote darknet market activity.
Illegal codes flow
Data from a New York-based blockchain forensics company found that over 90% of illegal cryptocurrency inflows into the Kyrgyzstan registration exchange between February 2022 and July 2025 were related to sanctions-related activities.
Shared control
TRM Labs says that shortly after Garantex was shut down, a spinoff called Grinex emerged and began using “the same spending heuristics that were previously associated with Garantex.”
“In May 2025, TRM Labs reported that Grinex had accelerated a move in funds from Garantex by enabling its withdrawal via Russia’s Stablecoin A7A5. Users with a balance of over USD 50,000 were able to extract funds through Grinex using A7A5 by Garantex’s Takedown.
Additionally, analysts at TRM Labs say the wallet infrastructure across Kyrgyzstan exchanges suggests “shared control or adjustment.” Some have been exposed to groups such as Rusich, a Russian paramilitary unit that was approved in 2022 for “taking part in battles alongside the Russian army in Ukraine.”
TRM Labs will link the Kyrgyzstan surge in cryptocurrencies to the 2022 law granting property rights tokens, clearing the path of 126 registration platforms by the second half of 2024. The warning signs say are clear.
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