Garantex’s Legacy: Could Grinex Signal a New Chapter in Russian Cryptocurrency Exchanges?

• In a striking turn of events, Garantex’s operations have resurfaced under the new name Grinex, just days after being shut down by authorities in the US and EU.

• Despite facing significant legal challenges, the exchange has already made a dramatic return, processing over $36 million in transactions within its first week.

• Global Ledger asserts that blockchain analysis confirms a strong connection between Garantex and Grinex, revealing large-scale transfers of A7A5 coin between the two platforms.

Garantex’s new platform Grinex launches amidst scrutiny, having processed $36 million in transactions while aiding former users in recovering lost funds.

Is Garantex Back Under a New Name?

Garantex, a prominent Russian cryptocurrency exchange, recently went dark after regulators across the US and Europe moved to shut it down. Following the closure, Tether took a significant step by freezing USDT wallets worth $28 million, and the US Department of Justice acted swiftly to seize Garantex’s digital domains amidst the arrest of its co-founder.

However, new evidence suggests that rather than disappearing, Garantex has transitioned to a new platform named Grinex. A report from Global Ledger indicates that this new exchange is essentially a continuation of Garantex, utilizing a similar operational framework and community of users.

“Swiss blockchain analytics company Global Ledger has completed its investigation and gathered conclusive evidence that Grinex, the exchange that emerged shortly after the dramatic collapse of Garantex, is, in fact, a direct continuation of Garantex itself,” stated Global Ledger in a press release shared with COINOTAG.

The basis for this assertion stems from robust blockchain investigations that traced substantial liquidity transfers of A7A5, a ruble-backed stablecoin that was listed on Garantex prior to its seizure. Reports show that A7A5 was quickly transitioned to Grinex after Garantex’s closure, solidifying their connection.

Garantex Wallets Link to Grinex. Source: Global Ledger

Garantex Users Are Receiving Lost Funds On Grinex

Further analysis by Global Ledger has revealed that Grinex’s interface closely resembles that of Garantex, indicating that both platforms are likely managed by the same team. A marketing note from the Russian crypto tracking site CoinMarketRating has suggested that Grinex is indeed backed by the same owners who led Garantex prior to its closure.

More encouragingly, numerous users who experienced losses on Garantex have reported successful reimbursements through Grinex, further hinting at the continuity between the platforms. Feedback from these users suggests that Grinex has actively sought to integrate former Garantex clients by facilitating the recovery of funds.

Additionally, several Grinex customers have been noted visiting physical offices previously associated with Garantex, and many are migrating their assets to the new exchange. This influx of users indicates that Grinex has not only survived the crackdown but is leveraging the brand’s legacy to establish itself in the market.

The re-emergence of Grinex underlines a crucial narrative in the cryptocurrency landscape: the ongoing ability of firms to adapt and operate amidst strict regulatory environments. Despite the US Department of Justice’s actions against Garantex, the formation of Grinex illustrates that such platforms can find ways to persist and evade operating prohibitions while catering to their existing user bases.

Conclusion

The swift launch of Grinex following Garantex’s cessation signifies a notable chapter in the ongoing evolution of cryptocurrency exchanges in Russia. With over $36 million already transacted and previous users successfully reclaiming their lost assets, Grinex has positioned itself as a resilient player in the crypto market. This situation serves as a reminder of the complexities involved in cryptocurrency regulations and the innovative ways in which exchanges attempt to navigate these challenges. Whether Grinex can sustain its operations legally remains an ongoing concern, warranting close observation from regulators and users alike.