US Moves to Sanction Crypto Wallets Linked to Garantex Exchange and Houthi Movement

The US Treasury Department sanctioned eight (8) crypto wallets associated with the Russian crypto exchange Garantex and the Houthi military organization. 

The United States Office of Foreign Assets Control (OFAC) introduced sanctions against eight crypto wallet addresses based on data from Chainalysis and TRM Labs. 

US Sanctions Wallets Linked to Houthi Operations in Yemen

The United States imposed sanctions on eight crypto wallet addresses linked to the Russian cryptocurrency exchange Garantex and the Yemini-based political and military organizations, the Houthis. The move comes after blockchain forensics identified nearly $1 billion in funds linked to Houthi operations. Based on data from the forensics firms Chainalysis and TRM Labs, OFAC identified several wallet addresses used to support Houthi weapons, commodities procurement, and efforts to evade sanctions. 

In a press release issued by OFAC, the agency “took action against a network of Houthi financial facilitators and procurement operatives working in coordination with Sa’id al-Jamal, a senior Houthi financial official backed by Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF).” OFAC explained the network procured millions worth of commodities from Russia, including weapons and sensitive goods, including grain stolen from Ukraine, destined for Houthi-controlled Yemen. The agency identified several wallets used by Houthis to transfer funds linked to their activities. 

According to OFAC’s press release, the Houthis deployed missiles, unmanned aerial vehicles and naval mines to attack and sabotage commercial shipping interests in the Red Sea, significantly threatening global navigation and the integrity of international commerce. The Houthis attacked civilian economic infrastructure, enabled and incentivised by Iran, one of the greatest enemies of the US, and has led to the demise of innocent civilians, resulting in millions worth of damage to commercial shipping. 

Scott Bessent, Secretary of the Treasury, commented on the sanctions, saying:

“The Houthis remain reliant on Sa’id al-Jamal and his network to procure critical goods to supply the group’s terrorist war machine. Today’s action underscores our commitment to degrading the Houthis’ ability to threaten the region through their destabilizing activities.”

Nearly $1 Billion Linked to Sanctioned Entities

Per the data compiled by the blockchain analysis firms, two of the eight deposit addresses are at major crypto platforms, while six are privately controlled. The eight addresses reportedly moved nearly $1 billion, and most of the transactions funded Houthi operations in Yemen and the Red Sea. 

TRM Labs stated in a blog post:

“…on-chain analysis of the eight cryptocurrency addresses designated today shows millions of dollars in volume flowing to other high-risk and OFAC-sanctioned entities, including Sa’id al-Jamal and Garantex, as well as to addresses identified by TRM as belonging to manufacturers and sellers of both unmanned aerial vehicles (UAVs) and anti-UAV equipment connected to China and Russia.” 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.