Japan Freezes Assets of Russian Crypto Exchange Garantex

Japan has taken a significant step in its sanctions against Russian entities by freezing the assets of the crypto exchange Garantex. Announced on October 2, this move aligns Japan with the United States and the European Union, which have already targeted Garantex for its alleged role in handling over $100 million in illicit transactions, including ransomware and terrorism-related activities.

The action comes nearly a year and a half after U.S. authorities seized Garantex’s domain in March 2025. Despite this, the exchange’s staff had already relocated customer deposits to a successor platform called Grinex, highlighting the challenges of enforcing sanctions in the crypto space. According to blockchain analytics firm Elliptic, Garantex processed more than $60 billion in transactions after being sanctioned in 2022, with a total of over $96 billion passing through the platform.

Japan’s sanctions package is part of a broader effort to restrict financial dealings with Russian entities. The freeze extends to other industries, including defense contractors, industrial companies, and 35 vessels linked to Russia’s oil trade. However, the effectiveness of these measures is questionable, as Garantex’s operators appear to have anticipated the crackdown by setting up Grinex in advance. The U.S. Treasury later sanctioned Grinex, along with several related companies and executives, but the damage was already done.

Under Japan’s Foreign Exchange and Foreign Trade Act, residents and companies now require permission to engage in financial transactions with Garantex. While this closes a financial door, it may not fully prevent the flow of illicit funds. The case underscores the difficulty of shutting down crypto exchanges that can quickly relocate or rebrand to evade sanctions.