International law enforcement agencies from the United States, Germany, and Finland have successfully disrupted Garantex, a cryptocurrency exchange suspected of being involved in significant financial crimes, including money laundering for transnational criminal groups and violations of international sanctions. This operation marks a critical step in combating illegal cryptocurrency activities and holding accountable those responsible for facilitating illicit financial transactions.
The joint effort to dismantle Garantex involved the seizure of key infrastructure and financial assets associated with the exchange. Two individuals, namely Aleksej Besciokov and Aleksandr Mira Serda, have been charged in connection with their alleged roles in operating Garantex. Besciokov, a Lithuanian national and Russian resident, served as the primary technical administrator of the exchange, while Mira Serda, a Russian national and United Arab Emirates resident, held the position of co-founder and chief commercial officer. Both individuals are facing charges related to money laundering conspiracy, with Besciokov also facing additional charges of conspiracy to violate sanctions and operate an unlicensed money-transmitting business.
According to court documents, investigators believe that Garantex processed an estimated $96 billion in cryptocurrency transactions since its establishment in April 2019, with a significant portion of these funds linked to criminal organizations engaged in activities such as hacking, ransomware attacks, terrorism financing, and drug trafficking. The exchange is believed to have catered to transnational criminal groups, including those with alleged ties to terrorism, and facilitated the circumvention of international sanctions through its operations.
Despite being sanctioned by the US Department of the Treasury in April 2022 for its role in facilitating money laundering for ransomware actors and darkweb markets, Garantex continued to operate by reportedly altering its operational strategies to avoid detection. The exchange’s operators allegedly employed tactics such as frequently changing cryptocurrency wallet addresses to evade sanctions and continue their illicit activities.
The investigation into Garantex involved a multinational collaboration between law enforcement agencies and specialized entities, including the German Federal Criminal Police Office, Frankfurt General Prosecutor’s Office, Dutch National Police, Europol, Finnish National Bureau of Investigation, Estonian National Criminal Police, Tether, and blockchain analytics firm Elliptic. The indictment reveals that some of Garantex’s clients included notorious entities such as North Korea’s Lazarus Group, Russian oligarchs, and the TGR Group, prompting a public appeal for potential victims to come forward and assist in the ongoing investigation.
The dismantling of Garantex represents a significant milestone in the fight against cryptocurrency-related crimes and money laundering activities. By targeting the infrastructure and operators of illicit exchanges, law enforcement agencies are sending a strong message that those involved in facilitating financial crimes will be held accountable for their actions. This operation underscores the importance of international cooperation in combating illegal cryptocurrency operations and safeguarding the integrity of the financial system from abuse by criminal elements.