Eight cryptocurrency wallet addresses connected to the Yemeni Houthi movement and the Russian exchange Garantex were sanctioned by US authorities after blockchain forensics connected roughly $1 billion in money to Houthi activities.
Eight bitcoin wallet addresses connected to the Houthis, a Yemeni political and military group, and the Russian cryptocurrency exchange Garantex were sanctioned by the US Treasury Department.
Eight crypto addresses that were connected to the companies by data from blockchain forensic companies Chainalysis and TRM Labs were sanctioned by the US Office of Foreign Assets Control (OFAC). Six are privately held, while two are deposit addresses at well-known cryptocurrency services.
An illustration of the OFAC sanctions transaction flow. Chainalysis is the source.
According to reports, the aforementioned locations transferred cash associated with sanctioned businesses totaling around $1 billion. The majority of the deals financed Houthi activities in the Red Sea area and Yemen.
“The inclusion of Houthi-linked wallets reflects a broader recognition of crypto’s role in geopolitical conflicts and terrorism financing,” Slava Demchuk, a consultant for the United Nations Office on Drugs and Crime and an expert in money laundering with a focus on cryptocurrency, told Cointelegraph. The ramifications are extensive, he continued, adding that “decentralized platforms may come under more scrutiny, attribution efforts will increase, and compliance frameworks must quickly adapt.”
Demchuk emphasized that the circumstances change the regulatory environment. The cryptocurrency “is now firmly within the scope of international security,” he said.
The Zaidi Shia community gave rise to the Houthis, also called Ansar Allah, a political and militant force in Yemen. They began as a reformer and revivalist organization before emerging as a significant player in the ongoing crisis in Yemen.
Related: US DOJ claims to have confiscated cryptocurrency used by Hamas to fund terrorism
The Houthis have used drones and missiles to strike both military and civilian ships in the Red Sea in recent years. President Donald Trump of the United States declared the group to be a foreign terrorist organization in January.
According to the release, “the Houthis’ activities threaten the stability of global maritime trade, the safety of our closest regional partners, and the security of American civilians and personnel in the Middle East.”
The group was recently struck by a US bombing campaign.
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Garantex is a Russian crypto exchange that was sanctioned and shut down in early March after purportedly helping money-laundering efforts. At the time, Tether — the leading stablecoin operator and issuer of USDt — froze $27 million in USDt on the platform, forcing it to halt operations.
The platform has reportedly shifted millions of dollars as it sought to reboot under its new brand, “Grinex.”
In mid-March, officials with India’s Central Bureau of Investigation announced the arrest of Lithuanian national Aleksej Bešciokov, who was alleged to have operated the cryptocurrency exchange Garantex.
The arrest of the alleged Garantex founder was based on US charges of conspiracy to commit money laundering, conspiracy to operate an unlicensed money-transmitting business and conspiracy to violate the International Emergency Economic Powers Act.
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