The United States and the United Kingdom have rolled up their sleeves and are investigating what looks like a gross $20 billion mishandling of crypto.

Yeah, you heard that right. $20 billion with a ‘B’.

They’re zeroing in on Garantex, that Russian exchange that’s been under so many sanctions, amidst a storm of crypto transactions that could very well be fueling Russia’s unsavory adventures in Ukraine.

The stakes? BIG.

The implications? Even bigger.

I’m talking about the huge amount of USDT—Tether, the darling of the crypto market that [tries to] sticks to the dollar like glue—sashaying through Garantex.

So you know this Moscow-based exchange has been the go-to spot for all kinds of illegal crypto transactions, despite having a big, red ‘sanctioned’ stamp on its forehead by both the U.S. and UK.

A Cat-and-Mouse Game

Now Garantex has had its share of the limelight since its birth in 2019 Estonia. Fast forward to today, and it’s practically got its roots buried deep in Moscow’s Federation Tower. Estonia showed Garantex the door back in February 2022, right around when Uncle Sam and the Brits were sharpening their sanctions pencils.

The U.S. Treasury isn’t playing around either.

They’ve got Garantex in their sights, for being the perfect playground for bad guys, including a certain Russia-based ransomware posse known as Conti. These guys were supposedly having a field day with over $100 million in illicit activities, all under Garantex’s watch. And to make things worse, Garantex was caught on camera, cozying up with sanctioned Russian banks and mapping out ways to keep the US dollar within arm’s reach, despite the sanctions.

Oops.

Oh Crypto, the Double-Edged Sword You Are

Tether, the diva right in the middle of this whole problem, sits on a throne made of over $100 billion worth of coins. She’s like the James Bond of cryptocurrencies—smooth, reliable, and always on a mission.

Tether Holdings claims they’ve got everything under control. Every transaction is under the microscope, and they’re in cahoots with law enforcement to keep the monsters at bay.

“With Tether, every criminal can be caught,” they say. Bold words, no? Because as we all know, criminals have a soft spot for Tether. It’s their go-to currency for everything shady, from online scams that would make your grandma’s head spin to dodgy deals that cross international borders. And despite Tether Holdings’ best efforts to freeze assets tied to the naughty list, the $19.3 billion in illicit transactions tells a different story.

So I’m not really sure about that, Tether.

As for the U.S. and UK, they seem to have once again found a common enemy to play friends against. Can’t wait to see what happens next.