- Grinex suffered a $13 million hack and has halted trading operations since Thursday.
- The crypto exchange blames its latest woes on “Western Special Services.”
- Grinex exchange has ties to Garantex, a trading platform under sanction by the US.
Grinex, a Russia-linked crypto exchange registered in Kyrgyzstan, has halted operations after alleging a hack that cost it approximately 1 billion rubles, equivalent to $13.1 million.
Grinex Blames the West for the Attack
In a Thursday announcement, Grinex claimed that “Western Special Services” were behind the hack. According to the exchange, the incident is a large-scale cyberattack, with digital traces and character attacks testifying to an unprecedented level of resources and technology available exclusively to structures of unfriendly states.
Having paused all exchange activities, Grinex stated that it had provided relevant information to law enforcement with plans to open a criminal case.
Grinex is Linked to US-Sanctioned Garantex
It is worth noting that Grinex is linked to Garantex, a Russian exchange sanctioned and taken down by the US Secret Service after allegations of ties to sanctioned Russian banks and criminal groups. Those were considered the main vehicles for trading ruble-backed stablecoin A7A5.
The A7A5 stablecoin was primarily created as a tool to evade Russian sanctions, and has transferred value exceeding $100 billion.
Crypto Users’ Perception
Although a separate entity, many crypto practitioners view Grinex as a successor to the sanctioned Garantex exchange. Users migrated from the latter days after it was shut down, moving liquidity to the former, alongside other similar platforms.
Since Garantex’s ban, a handful of platforms have assumed the role of exchanges for ruble-to-crypto trading, with Grinex in particular posing as a primary hub for the A7A5 stablecoin, as earlier stated.
Grinex stated that it had been under attack from inception. According to an announcement, the crypto exchange said it had fixed systematic attempts to limit cryptocurrency withdrawals. The exchange was included in a special list, with crypto wallets purposefully marked, and transactions blocked.
What On-Chain Trail Reveals
On-chain data revealed that the drained USDT was routed through addresses on the Tron and Ethereum networks before being converted into TRX and ETH. According to analytics firm Elliptic, the conversion was likely to reduce the risk of the stolen funds being frozen by Tether, citing the stablecoin issuer’s ability to blacklist USDT linked to illicit activity.
Related: European Union Blocks Ruble Stablecoin A7A5 Tied to Sanctioned Russian Bank
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