Garantex had ‘contingency plans’ last time authorities tried to shut it down

The US government redesignated Garantex on Thursday to its list of sanctioned entities, along with its successor, Grinex, but TRM Labs suggests it could be ineffective.

Cryptocurrency exchange Garantex Europe, which was sanctioned on Thursday, could already have a contingency plan allowing it to skirt the impact of US sanctions, says blockchain intelligence firm TRM Labs. 

On Thursday, the US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Garantex a second time, along with its successor, Grinex. 

However, TRM Labs said in a report on Thursday that the sanctions may turn out to be ineffective, as entities like Garantex “appear to prepare contingency plans well in advance of anticipated enforcement measures” which allow them to quickly migrate clients, infrastructure and funds to successor platforms.

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