Garantex Co-Founder Arrested in India Amid Money Laundering Charges
Indian authorities have arrested Aleksej Besciokov, co-founder of Garantex, a cryptocurrency exchange linked to extensive money laundering activities.
$60 Billion In Transactions Linked To Criminal Activity
Key points regarding the case:
- Besciokov, a Lithuanian national, was arrested in Varkala, Kerala while on vacation.
- The US Department of Justice (DOJ) unsealed an indictment on March 7, charging him and co-founder Aleksandr Mira Serda with conspiracy to commit money laundering.
- Garantex, launched in 2019, was sanctioned by the US Treasury's Office of Foreign Assets Control in April 2022 for facilitating criminal proceeds.
- The exchange processed over $60 billion since the sanctions were imposed, raising concerns about its operations.
- Blockchain analysis firm Elliptic reported Garantex's involvement in ransomware attacks, drug trafficking, and enabling Russian oligarchs to move wealth abroad after the Ukraine invasion.
DOJ Alleges Garantex Co-Founder Operated Under Hacker Alias “Proforg”
Additional details include:
- Besciokov allegedly served as Garantex’s primary technical administrator.
- German and Finnish law enforcement seized servers related to Garantex’s operations; US authorities froze over $26 million associated with money laundering.
- Besciokov operated under the hacker alias "proforg."
- Charges include conspiracy to violate the International Economic Emergency Powers Act, with a maximum sentence of 20 years, and operating an unlicensed money transmitting business, which carries an additional five years.
- He is scheduled to appear in a Delhi court on March 14.
If convicted, he may forfeit any property linked to the offenses.
