Indian authorities have arrested a cryptocurrency exchange administrator wanted by the US on charges of money laundering and sanctions violations.

Who Was Arrested?

The detained individual is Aleksej Besciokov, a Lithuanian citizen and Russian resident. He was an administrator of the cryptocurrency exchange Garantex, one of the largest Russian platforms for digital asset trading.

The arrest took place on Tuesday in the southern Indian state of Kerala, according to India’s Central Bureau of Investigation (CBI).

According to the US Department of Justice (DOJ), Besciokov was responsible for reviewing and approving transactions on Garantex. Since 2019, the exchange processed at least $96 billion (£74.1 billion) in cryptocurrency transactions, including hundreds of millions of dollars in criminal proceeds.

What Are the Charges Against Besciokov?

The DOJ states that Garantex was used for various crimes, including:

  • hacking attacks,
  • ransomware extortion,
  • terrorist financing,
  • drug trafficking.

Additionally, Besciokov is accused of violating sanctions and operating an unlicensed financial business.

Last year, the US, along with Germany and Finland, dismantled Garantex’s online infrastructure. However, according to the DOJ, the exchange’s administrators redesigned its operations to evade sanctions and lure American companies into working with them.

What Happens Next?

Besciokov was arrested at the request of the US and is currently in custody. He is expected to be presented in a court in Delhi, where a decision on his extradition to the United States will be made.

Alongside Besciokov, Aleksandr Mira Serda, the Russian co-founder of Garantex, has also been charged in the case. Both are accused of money laundering.

Garantex was sanctioned by the US Treasury Department in 2022, but continued to operate using new schemes to bypass restrictions.

Conclusion

This arrest marks a significant step in the global fight against cryptocurrency-related crimes. The US continues to tighten its control over illicit crypto exchanges used for money laundering and sanctions evasion. However, the key question remains: Can the crypto market effectively protect itself from new financial crime schemes?