Indian authorities have apprehended Aleksej Besciokov, the alleged co-founder of the cryptocurrency exchange Garantex, which was sanctioned by the U.S. government for facilitating money laundering activities. Besciokov, a Lithuanian national, was arrested while on vacation with his family in India. The U.S. Department of Justice recently unsealed an indictment against Besciokov and his alleged co-founder Aleksandr Mira Serda, a Russian national living in the United Arab Emirates.
Garantex, which was launched in 2019, was first sanctioned by the U.S. Treasury Office of Foreign Assets Control in 2022 for receiving criminal proceeds, including funds used for illicit activities such as hacking, ransomware, terrorism, and drug trafficking. Despite these sanctions, Garantex has processed over $60 billion in transactions, according to blockchain analysis company Elliptic.
Elliptic highlighted Garantex’s role in sanctions evasion by Russian elites and its connection to money laundering activities related to ransomware, darknet markets, and thefts attributed to North Korea’s Lazarus Group. The exchange also allegedly enabled Russian oligarchs to move their wealth out of the country following the invasion of Ukraine.
The U.S. government alleges that Besciokov was Garantex’s primary technical administrator, responsible for maintaining critical infrastructure and approving transactions. Mira Serda, on the other hand, is said to be the co-founder and chief commercial officer of the exchange. German and Finnish law enforcement seized servers hosting Garantex’s operations in conjunction with the indictments.
Authorities in India arrested Besciokov in Varkala, a coastal city in the state of Kerala, where he was vacationing with his family. He is scheduled to appear in a Delhi court on March 14 to face charges related to money laundering and other financial crimes. The U.S. Secret Service had previously published a “most wanted” notice for Besciokov, stating that U.S. authorities had obtained copies of Garantex’s servers and froze over $26 million in funds linked to the exchange’s illicit activities.
The DOJ’s indictment reveals that Besciokov used the hacker handle “proforg” and was associated with a Russian-language forum called “udaff.” He and Mira Serda are charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. Additionally, Besciokov faces charges of violating the International Economic Emergency Powers Act and operating an unlicensed money transmitting business, which could result in further prison time.
Overall, the arrest of Aleksej Besciokov in India marks a significant development in the global crackdown on cryptocurrency exchanges involved in illicit financial activities. With international authorities working together to combat money laundering and other financial crimes, the case of Garantex serves as a reminder of the ongoing challenges posed by the digital asset industry.