If you're in Russia and thinking about using a crypto exchange, you need to know which ones could land you in serious trouble. Itâs not just about losing money - itâs about risking your freedom. Since early 2025, Russian authorities have been aggressively targeting unlicensed crypto platforms, and the crackdown isnât slowing down. Hundreds of users have already lost access to their funds, and some are facing criminal charges. The exchanges you should avoid arenât just unreliable - theyâre legally dangerous.
Why Some Exchanges Are Deadly for Russian Users
Not all crypto exchanges are created equal, especially for people living in Russia. While owning cryptocurrency isnât illegal, using certain platforms can trigger investigations under Article 193.1 of the Russian Criminal Code - which deals with illegal currency transactions. The real danger comes from exchanges that help users bypass Russiaâs capital controls or launder money for sanctioned entities. The Bank of Russia has made it clear: any platform not licensed under the countryâs experimental legal regime is high-risk. These unlicensed exchanges often operate through offshore shell companies in places like Hong Kong, Georgia, or the UAE. They donât report transactions to Rosfinmonitoring, Russiaâs financial monitoring service. That might sound convenient, but itâs exactly what makes them targets for police raids. In October 2024, Russian security services raided over a dozen locations and seized more than $10 million in cash and crypto. The targets? Operators and users of platforms linked to money laundering. One major player in this network was Garantex - and its successor platforms like Grinex and Exved. These werenât just shady businesses. They were key nodes in a system used to move billions of rubles out of Russia, often tied to ransomware, darknet markets, and sanctions evasion.The Big Three: Garantex, Exved, and Grinex
If youâve heard of Garantex, you should know itâs officially sanctioned by the U.S. Treasuryâs OFAC. In April 2022, the U.S. government named Garantex for helping ransomware groups like Hive move money. Chainalysis later found that 68% of its transaction volume was linked to criminal activity - including 12 major darknet markets and seven ransomware variants. Garantex shut down in 2024, but its team didnât disappear. They simply rebranded. Exved and Grinex emerged as its direct successors, run by the same people, including Sergey Mendeleev - the original architect behind Garantex. These new platforms still use the same tricks: minimal verification (sometimes just a phone number), fast transfers, and hidden ownership. Grinex, for example, operates heavily through Telegram. Users deposit rubles, and within minutes, they receive USDT or other crypto sent overseas. No paperwork. No questions. Sounds easy, right? But hereâs the catch: when Russian banks trace those ruble transfers back to Alfa-Bank accounts linked to Hong Kong-based companies like Feilian Limited, the entire chain gets flagged. And when the crackdown came in March 2025, thousands of Grinex users woke up to frozen accounts and zero customer support. Exved, meanwhile, processed over 2 billion rubles monthly through Alfa-Bank, disguising crypto flows as legitimate import-export payments. The U.S. Department of Justice indicted Exvedâs leadership in March 2025 for facilitating over $500 million in illicit transactions. Russian courts have since started prosecuting users who transferred more than 50,000 rubles through these platforms - yes, even small amounts can trigger criminal investigations.
What Happens When You Use These Exchanges?
Itâs not just about losing your crypto. Real people have faced real consequences. On Russian forums like Dvach and RuTracker, users report the same nightmare: deposit rubles, get crypto, try to withdraw - and then everything vanishes. One user, CryptoPatriot_88, lost 1.2 million rubles after Grinex froze accounts during the March 2025 takedown. He sent daily messages for three weeks. No reply. Trustpilot reviews for Grinex average just 1.2 out of 5 stars. Common complaints: âNo withdrawals after depositing,â âAccount disappeared overnight,â âNo contact info.â On Redditâs r/RussianCrypto, 87% of 1,243 respondents said theyâd never use an unlicensed exchange again after the 2025 crackdowns. And itâs not just financial loss. Russian police have started visiting homes of frequent users. Based on bank transaction data, authorities can identify individuals who regularly moved money through these platforms. In some cases, users were detained for questioning under suspicion of aiding illegal currency operations. The Ministry of Finance confirmed in September 2025: users of unlicensed exchanges have no legal recourse if their funds are seized or frozen.Why These Exchanges Still Exist (And Why Theyâre Still Tempting)
You might wonder: if theyâre this risky, why do people still use them? The answer is simple: speed and access. Licensed Russian exchanges require users to be âespecially qualified investorsâ - meaning at least 6 million rubles in assets. Thatâs out of reach for most. Unlicensed platforms, on the other hand, let anyone sign up with a phone number and a passport photo. Transactions happen in minutes, not days. For people trying to send money abroad, pay for overseas services, or protect savings from inflation, it feels like the only option. But hereâs the math: sanctioned exchanges process 30-40% faster than compliant ones - because they skip all AML checks. That speed is a trap. Itâs not efficiency; itâs recklessness. And when the government moves in, youâre the one who pays. Market data shows these platforms still handle 15-20% of Russiaâs crypto volume, even though they make up only 5% of available options. Thatâs because they fill a gap - but at a deadly cost. After the March 2025 Garantex takedown, trading volume on these platforms dropped by 78%. Thatâs not a coincidence. Itâs enforcement.
Whatâs Coming Next: New Laws and Tighter Controls
The Russian government isnât done. In September 2025, the State Duma introduced Draft Bill No. 45876-8, which would make using unlicensed crypto exchanges a criminal offense. First-time offenders could face fines up to 1 million rubles. Repeat offenses? Jail time. The Ministry of Finance is also pushing to lower licensing requirements - but only for exchanges that serve sanctioned international trade. That means even if youâre trying to pay for foreign goods legally, you still need to use a platform that reports everything to Rosfinmonitoring. No exceptions. International pressure is growing too. The U.S. State Department is offering up to $5 million for information leading to the arrest of Garantexâs top executives. Rosfinmonitoring now shares crypto transaction data with FATF members - meaning Russian usersâ activity is being monitored by global agencies. By Q2 2026, analysts predict 90% of Russians will stop using these high-risk platforms. The only ones left will be those who donât understand the risks - or those who think they wonât get caught.What to Do Instead
If you need to use crypto in Russia, there are safer paths - but theyâre not glamorous. First, stick to platforms licensed under Russiaâs experimental legal regime. Theyâre few - only about a dozen - but theyâre legal. They require more paperwork, longer verification, and higher thresholds. But they also protect you. Second, avoid anything that operates through Telegram. No legitimate exchange uses private channels for onboarding. If it asks for your passport photo in a DM, walk away. Third, never use an exchange that doesnât disclose its legal entity or location. If you canât find a registered company name, address, or license number - itâs not worth the risk. And finally, remember this: if it sounds too good to be true - fast transfers, no ID, no limits - itâs probably a trap. The cost isnât just financial. Itâs legal. Itâs personal. And itâs irreversible.Is it illegal to own cryptocurrency in Russia?
No, owning cryptocurrency is not illegal in Russia. Federal Law No. 114-FZ, effective since January 2021, allows individuals to hold and trade digital assets. However, using crypto for domestic payments is banned, and only licensed exchanges can legally facilitate transactions under the experimental legal regime. The risk comes from using unlicensed platforms that violate capital control laws.
Can I get arrested for using Garantex or Grinex?
Yes. Russian authorities have already arrested exchange operators and are now targeting users who transferred significant amounts through sanctioned platforms. Under Article 193.1 of the Russian Criminal Code, individuals involved in illegal currency transactions can face up to 7 years in prison. Even small transfers - as low as 50,000 rubles - have triggered investigations. Police raids have targeted residential addresses based on bank transaction records.
What happens if my funds are frozen on an unlicensed exchange?
If your funds are frozen on an unlicensed exchange like Grinex or Exved, you have no legal recourse. The Russian Ministry of Finance confirmed in September 2025 that users of unlicensed platforms are not protected by law. Customer support is often non-existent, and recovery is nearly impossible. Most users report losing 100% of their deposits after platform takedowns.
Are there any legal crypto exchanges in Russia?
Yes, but theyâre limited. Only 12 exchanges are licensed under Russiaâs experimental legal regime. These platforms require users to meet strict criteria, such as being classified as âespecially qualified investorsâ with at least 6 million rubles in assets. They report all transactions to Rosfinmonitoring and comply with AML rules. While theyâre slower and more restrictive, theyâre the only safe option under current law.
Why do people still use banned exchanges like Exved?
People use them because theyâre fast, easy, and bypass Russiaâs strict capital controls. Licensed exchanges take days to verify users and require large minimum balances. Unlicensed platforms like Exved and Grinex sign you up in minutes with just a phone number. They let you send money abroad without paperwork - but at the cost of legal safety. Many users donât realize the risks until itâs too late.
Will these banned exchanges come back?
The major platforms like Garantex, Grinex, and Exved are unlikely to return in their current form. Russian authorities have seized servers, arrested operators, and are prosecuting users. However, decentralized alternatives - especially Telegram-based crypto bots like MKAN Coin - may persist. These operate without central servers, making them harder to shut down. But theyâre still illegal, and using them still carries the same legal risks.
People Comments
This is wild. I can't believe people still use these platforms. One wrong move and you're in jail. No thanks.
Just say no.
Period.
It is imperative to underscore that the legal ramifications associated with the utilization of unlicensed cryptocurrency exchanges in the Russian Federation constitute a direct violation of Article 193.1 of the Russian Criminal Code. The implications thereof are both severe and non-negotiable. One must exercise due diligence in all financial undertakings, particularly in jurisdictions characterized by stringent capital controls.
Compliance is not optional; it is obligatory.
Brooo, this is such a wake-up call! đł I live in India and I thought crypto was all about freedom - turns out, everywhere has rules, just different flavors!
Grinex on Telegram? Nah man, thatâs like trusting a stranger with your house keys. đ«
But hey, I get it - when inflation eats your salary, you look for loopholes. Still⊠not worth it. Stay safe, stay legal! đȘ
Ugh. Another âcrypto is dangerousâ article. Newsflash: everythingâs dangerous if youâre dumb.
Why are we even talking about this? Just use Binance. Done.
Can we move on now?
Hey guys, i read this and it made me think - i know a guy in moscow who used exved for 2 years, sent like 15lakh rubles, never got caught. He says they changed their ip every week and used vpn + fake id. But he also said the app kept crashing and support never replied after march 2025. So⊠maybe not worth the risk? đ€
Also, typo: garanex not garanex. lol
Thereâs a real human cost here that gets buried under the legal jargon. People arenât criminals - theyâre parents trying to pay for their kidâs meds abroad, or freelancers getting paid in crypto because their bank blocks international transfers.
Yes, the platforms are sketchy. But the system is rigged. You need 6 million rubles just to play nice? Thatâs not regulation - thatâs exclusion.
Letâs not punish the desperate just because the government failed to build real alternatives.
So if I own crypto but don't use these exchanges, I'm fine? đ
What about peer-to-peer trades? Like localbitcoins-style? Is that legal? Asking for a friend⊠who might be thinking about it đŹ
While the risks associated with unlicensed cryptocurrency exchanges are clearly articulated in this piece, it is equally important to recognize the structural inequities that compel individuals toward such platforms.
Legal compliance cannot be expected in the absence of accessible, affordable, and functional alternatives.
Policy must evolve to include inclusion - not just enforcement.
Russia should shut down every single crypto exchange. Full stop. No exceptions. Foreign money is poison. Our ruble is sacred. If you want to gamble, go to Vegas. Donât use our country as a laundering hub. These users deserve what they get. No sympathy.
Lock them up.
Okay, real talk - I used to think crypto was just about making money.
Now I see itâs about survival. People arenât using Grinex because theyâre criminals - theyâre using it because the system gave them no other way out.
Yes, itâs risky. But whatâs riskier? Losing your savings to inflation⊠or risking jail?
Thatâs not a choice. Thatâs a trap.
And the government? They built the trap. Then blamed the people for falling in.
Time to fix the system, not just punish the victims.
Bro this is so real đ€Ż
My cousin in Moscow used Grinex for 6 months - sent 200k rubles to buy USDT to pay for his sisterâs surgery abroad. Then poof - everything vanished. No call, no email, no nothing.
Now heâs working 3 jobs to pay off the debt.
Donât do it. Seriously.
â€ïž
The legal framework in Russia is clear. The risks are documented. The consequences are severe. There is no ambiguity in this matter.
Using unlicensed platforms is a violation of national law.
It is not a gray area. It is a red line.
Respect the law.
I⊠I just donât know what to say.
Itâs so sad.
People are just trying to survive.
And theyâre being treated like criminals.
Itâs not fair.
Itâs not right.
And itâs going to get worse.
Why canât we help them?
Why punish the people?
Why not fix the system?
Why?
Why?
Why?
...
While the moral and legal implications of using unlicensed exchanges are deeply concerning, the underlying socioeconomic pressures that drive individuals toward such platforms must not be dismissed as mere negligence.
Policy makers must recognize that financial exclusion is not a victimless crime.
Enforcement without equity is tyranny disguised as order.
Look, I get why people use these platforms - I really do.
But hereâs the thing: you donât have to be a millionaire to stay safe.
Start small. Learn the licensed ones. Even if it takes 3 days to verify, itâs better than 3 years in jail.
And if youâre scared? Talk to someone. Ask questions. Donât just trust a Telegram bot.
Youâre smarter than the scam. Prove it.
As a cultural anthropologist studying financial behavior in post-sanction economies, I find this case study fascinating.
These platforms arenât just financial tools - theyâre social artifacts of resistance, adaptation, and digital diaspora.
Their rise reflects the collapse of trust in state-backed financial infrastructure.
And while their methods are legally dubious, their emergence is sociologically inevitable.
Shutting them down without replacing them is like removing oxygen from a room and blaming the people for gasping.
Whatâs next? Criminalizing VPNs? đ
Letâs not mistake survival for sin.
Honestly? Iâm just here for the drama.
But also⊠kinda scared now.
Thanks for the info, I guess.
Man, this hits different.
Iâm from Nigeria - weâve had our own crypto crackdowns.
Same story: slow banks, no access, people turn to P2P.
But hereâs the truth - the real enemy isnât the user.
Itâs the system that leaves them no choice.
We need solutions, not scares.
Letâs build bridges, not walls.
One must question the intellectual maturity of those who would willingly engage with entities that have been formally sanctioned by the U.S. Treasury and identified by Chainalysis as conduits for ransomware. The conflation of convenience with legitimacy is the hallmark of the financially naive.
One does not become an expert by ignoring warnings - one becomes a statistic.