Key points
- US, Germany, and Finland took down Russian cryptocurrency exchange Garantex
- Besciokov was arrested in the southern Indian state of Kerala
- Garantex handled over $96 billion in cryptocurrency transactions: US Justice Department
WASHINGTON: Indian authorities arrested a cryptocurrency exchange administrator accused of money laundering conspiracy and violating sanctions at Washington’s request, India’s top crime fighting bureau said on Wednesday.
The United States, Germany, and Finland took down the online infrastructure used by the Russian cryptocurrency exchange Garantex, the US Justice Department said last week, adding that two exchange administrators were charged, according to the Arab News.
One of those administrators was Aleksej Besciokov, a Russian resident and Lithuanian national who was charged with money laundering and also faced accusations of violating sanctions and operating an unlicensed money-transmitting business, the Justice Department said on Friday.
Provisional arrest warrant
Besciokov was arrested in the southern Indian state of Kerala, India’s Central Bureau of Investigation said, adding US authorities wanted him. The CBI said that at Washington’s request, India’s foreign ministry had a provisional arrest warrant issued.
It was reported that Besciokov was planning to leave India, though the reason for his presence there was unclear. Washington is anticipated to seek his extradition. His representative was unavailable for comment.
“I can confirm Aleksej Besciokov, one of the administrators of Garantex, was arrested in India at the request of the United States,” a US Justice Department spokesperson told media.
Massive cryptocurrency transactions
According to the US Justice Department, the exchange has handled over $96 billion in cryptocurrency transactions since April 2019. Garantex was sanctioned by the US in April 2022.
In a blog post last week, blockchain research firm TRM Labs stated that the shutdown of Garantex represents a significant step in combating illicit finance, but also warned that sanctioned exchanges often try to bypass restrictions by establishing new entities.
US crackdown
After the Justice Department unsealed the indictment against Besciokov and Serda last week, the US Secret Service seized Garantex’s websites, and authorities froze over $26 million in cryptocurrency.
Following this, Garantex halted its operations and offered customers the opportunity for “face-to-face meetings” at its Moscow office, while announcing an unspecified “solution for blocked assets.”
In a statement to TechCrunch, Indian police confirmed they sought an arrest warrant for Besciokov at the request of the US government, as he was attempting to flee India, according to the Times of India.
After his arrest, he was brought before a district court and is scheduled to appear in Patiala Court next week to face the charges.
