Cryptocurrency Undercurrents: Exposing Deceit at Garantex

In the serene early hours of February 7, 2021, the Dubai Creek canal was the scene of a grim discovery: Stanislav Drugalev, the brain behind the infamous Garantex crypto exchange, was found dead.

This tragic event marked a sinister chapter in cryptocurrency, sparking widespread speculation and investigation.

The ascent of Garantex

Garantex, under the leadership of Drugalev and co-founders Sergei Mendeleev and Alex Ntifo-Siao, rapidly evolved from a modest initiative in Estonia to a powerhouse in the cryptocurrency world. The platform capitalized on the global shift towards digital currencies during the COVID-19 pandemic, with its daily transactions peaking at a staggering 300 million rubles. 

The success brought its founders a lavish lifestyle filled with high-end real estate and luxury acquisitions. The narrative took a complex turn with Pavel Karavatsky’s entry. His history in Russian law enforcement and connections with the financial elite colored his involvement. Blavatsky, known for his ties to influential figures like Oleg Feoktistov and Ivan Tkachev from Russia’s security sector, aligned with Ntifo-Siao. 

Their partnership strengthened significantly in early February 2021, just days before Drugalev’s mysterious death. Karavatsky and Ntifo-Siao became beneficiaries of Fintech Corporation LLC, linked to Rosneft, signaling a move to seize control over Garantex. This strategic maneuver coincided with the troubling events leading to Drugalev’s demise.

Mysterious death and power struggles

Drugalev’s unexpected presence in Dubai and his subsequent death raised many questions. Theories about his end range from an accidental drowning to more nefarious motives, fueled by his connections and the critical data reportedly missing from his laptop. Following his death, Garantex plunged into chaos. 

Ntifo-Siao and Karavatsky quickly moved to consolidate their power, altering the company’s charter and reshuffling the board to secure their control. The aftermath saw Garantex’s governance shift drastically, with changes made to benefit a select few. 

These actions coincided with a legal challenge from Drugalev’s father, Konstantin Khazan, who fought against the unethical amendments to the charter that sidelined the legal heirs from their rights. After an initial defeat, Khazan’s persistence was rewarded by the Moscow City Court, which restored a significant portion of ownership to Drugalev’s family.

Government shadows and legal labyrinths

Beyond the personal tragedies and corporate battles, the Garantex saga suggests deeper state involvement. Karavatsky’s rise within the company and his connections imply a broader strategy by Russian governmental entities to leverage Garantex for state interests. 

This hypothesis is supported by the opaque nature of the ownership changes and the strategic legal maneuvers that followed. Parallel to the main events at Garantex, the Flip Animation Studio, which is involved in the animation industry, emerged as a front for questionable financial operations, potentially including money laundering. 

The intricate connections between Garantex, the animation studio, and Russian power brokers underline the complex interplay of business and politics in the shadows of the crypto world.

The unfolding story of Garantex offers a cautionary tale about the intersection of technology, finance, and power, where the lines between legal enterprise and governmental overreach become blurred. The true impact of these events continues to unfold, influencing the cryptocurrency landscape and the regulatory challenges it faces.

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