This legal commentary analyzes the rise and fall of Garantex, a sanctioned Russian cryptocurrency exchange, examining its role in sanctions evasion, money laundering, terrorist financing, and regulatory abuse. Written from a crypto lawyer’s perspective, the article explores AML failures, stablecoin enforcement, cross-border prosecutions, and the legal risks faced by exchanges, operators, and users in an increasingly regulated global crypto environment.

This legal commentary examines how crypto criminals have stolen over $700 million from individual investors by exploiting long-standing fraud techniques adapted to blockchain technology. It analyzes real-world cases, emerging trends such as social engineering and physical coercion, regulatory gaps, and the limitations of asset recovery, highlighting why cryptocurrency remains a high-risk, low-recourse environment for users without adequate legal protections.

Reporting and Recovering Scammed Crypto Funds: A Comprehensive Guide