Tether has blocked wallets belonging to the Russian exchange Garantex, freezing assets worth over 2.5 billion rubles. In response, the platform has temporarily ceased operations and is seeking a solution.

According to Garantex, this move could put all USDT holdings on Russian wallets at risk.

Exved CEO Sergey Mendeleev believes the blockade will impact not only Garantex users but also Russia’s cross-border economic activities conducted via cryptocurrency.

“This is exactly the reality I have been warning about for at least two years, but neither the Central Bank nor the professional community listened. Were you expecting a ‘black swan’ event? Well, here it is. Maybe it’s time to create mechanisms that are immune to such blockades?” Mendeleev stated.

Cryptol reached out to Garantex representatives for comment but had not received a response at the time of writing.

On February 24, the EU included Garantex in its 16th sanctions package against Russia, citing the exchange’s alleged role in facilitating sanctions evasion.