Russia-linked Grinex crypto exchange suspends operations after cyber attack

Russia-linked Grinex crypto exchange suspends operations after cyber attack

Grinex Crypto Exchange Cyber Attack and Its Implications

(Corrects paragraph 7 to show that major Russian banks were disconnected from SWIFT, not all Russian banks, and replaces Western sanctions with EU sanctions)

Details of the Cyber Attack

MOSCOW, April 16 (Reuters) - Russia-linked sanctioned crypto exchange Grinex said on Thursday it had suspended operations after assets worth 1 billion roubles ($13.10 million) were stolen during a cyber attack.

Background on Grinex and Sanctions

Grinex, which is based in Kyrgyzstan but linked to Russia, was sanctioned by the U.S., the UK and the European Union last year.

Accusations and Investigation

In a statement posted on its Telegram channel, the exchange accused "foreign intelligence services" of unfriendly states of being involved in the attack. Reuters was not able to verify this claim.

Nature and Motive of the Attack

"The digital footprints and nature of the attack indicate an unprecedented level of resources and technologies available exclusively to entities of unfriendly states," the exchange said.

"According to preliminary data, the attack was coordinated with the aim of causing direct harm to Russia's financial sovereignty," it added. 

Grinex’s Role in Circumventing Sanctions

The U.S. has stated that Grinex helped customers circumvent sanctions via a Russian rouble-backed stablecoin called A7A5.

Impact of EU Sanctions on Russian Banking and Crypto Infrastructure

Russia, which had its major banks disconnected from the international SWIFT banking system as part of EU sanctions after its military campaign in Ukraine, has developed a sophisticated crypto infrastructure to facilitate its foreign trade.

($1 = 76.3500 roubles)

(Reporting by Reuters; Writing by Gleb Bryanski; Editing by Jane Merriman and Susan Fenton)