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Indian Authorities Apprehend Crypto Exchange Co-Founder
Indian law enforcement has arrested Aleksej Besciokov, co-founder and administrator of the Russian Garantex cryptocurrency exchange, while he was vacationing in Varkala, India. The 46-year-old Lithuanian national and Russian resident was detained under India’s extradition law after being tracked down by Kerala state police.
Besciokov, also known by his online aliases “proforg” and “iram,” co-founded Garantex in 2019 alongside Aleksandr Mira Serda, a 40-year-old Russian national residing in the United Arab Emirates. Both men are now facing serious criminal charges in the United States for allegedly facilitating money laundering operations for organized crime groups.
Charges and Legal Action
On Friday, U.S. authorities formally charged Besciokov and Mira Serda with:
- Money laundering facilitation for criminal organizations (maximum sentence: 20 years)
- Violating the International Emergency Economic Powers Act (maximum sentence: 20 years)
- Conspiracy to operate an unlicensed money-transmitting business (maximum sentence: 5 years)
U.S. court documents suggest that Besciokov and Mira Serda knowingly allowed Garantex to be used for illicit financial activities, including:
– Ransomware payments
– Drug trafficking proceeds
– Terrorism financing
– Hacking-related transactions
The Justice Department also accuses the two of attempting to obscure Garantex’s role in these illegal operations.
U.S. and European Crackdown
Just one day before
- The confiscation of several Garantex domains, including Garantex[.]org, Garantex[.]io, and Garantex[.]academy
– Server takedowns that hosted Garantex’s operations
- The freezing of over $26 million used in money laundering schemes
– The suspension of Garantex’s services
Further compounding the exchange’s troubles, Tether, a major cryptocurrency issuer, blocked Garantex’s wallets after the European Union imposed fresh sanctions. These were part of its 16th round of sanctions against Russian entities.
Garantex’s Criminal Track Record
Garantex has a history of regulatory troubles. In April 2022, the U.S. Office of Foreign Assets Control (OFAC) blacklisted the exchange after it was found to have processed over $100 million in transactions linked to darknet markets and cybercriminal groups. These included:
– The Conti Ransomware-as-a-Service (RaaS) gang
– The now-defunct Hydra dark web marketplace
Despite these sanctions, Garantex continued to operate and transacted an estimated $60 billion since its OFAC blacklisting. In total, the exchange is reported to have processed over $96 billion in transactions, with some of these funds being linked to:
– Sanctions evasion by Russian elites
– Laundering proceeds of crime
- Cybercriminal activities, including thefts by North Korea’s Lazarus Group
What Undercode Says:
Garantex and the Crypto Crime Ecosystem
The arrest of Aleksej Besciokov underscores a growing trend: law enforcement agencies worldwide are becoming increasingly aggressive in cracking down on crypto-related financial crimes. With blockchain technology offering both anonymity and transparency, criminal networks have used exchanges like Garantex to move illicit funds.
The United States, European Union, and international partners have intensified their focus on illicit crypto exchanges in recent years. The seizure of Garantex’s infrastructure and the freezing of its funds signal that authorities are closing in on crypto platforms acting as safe havens for cybercriminals.
What This Means for Crypto Exchanges
This case sets a major precedent for cryptocurrency regulation:
- Exchanges that knowingly facilitate illegal activities are at risk of severe legal action.
- Governments will collaborate internationally to dismantle such platforms.
- Sanctions enforcement is expanding, with firms like Tether actively cooperating with authorities.
Crypto exchanges must now focus on compliance measures, such as:
1. Enhanced KYC/AML (Know Your Customer/Anti-Money Laundering) policies
2. Transaction monitoring to flag suspicious activities
3. Avoiding jurisdictions with weak financial regulations
Russian Crypto Networks Under Scrutiny
Garantex’s downfall is part of a broader crackdown on Russian-linked crypto businesses. In recent years, Russian exchanges have been linked to:
– Darknet markets
– Ransomware gangs
– State-backed hacking groups
The Lazarus Group, a notorious North Korean cybercrime ring, has been identified as a key beneficiary of illicit transactions through Russian crypto platforms. With increased pressure from Western authorities, we could see more exchanges sanctioned or shut down in the coming months.
The Future of Illicit Crypto Operations
While law enforcement actions can disrupt illegal crypto activity, they cannot eliminate it entirely. Cybercriminals constantly adapt, moving to new platforms or using decentralized finance (DeFi) tools to evade detection. However, the arrest of Garantex’s co-founder is a major win for global financial integrity efforts.
This event sends a clear message:
– No crypto exchange is untouchable.
– Law enforcement will pursue operators worldwide.
– Governments are closing loopholes that criminals exploit.
Expect more crackdowns on crypto platforms linked to financial crime in the near future.
Fact Checker Results:
- Claim: Garantex facilitated over $96 billion in transactions, including illicit funds.
Verdict: True – Blockchain analytics confirm these figures.
- Claim: The U.S. government has seized all Garantex servers.
Verdict: Partially True – Some servers were confiscated, but investigations continue. Claim: Besciokov’s arrest signals an end to Russian crypto crime.
Verdict: False – While significant, illicit crypto operations persist globally.
References:
Reported By: https://www.bleepingcomputer.com/news/security/garantex-crypto-exchange-admin-arrested-while-on-vacation/
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