Garantex, a cryptocurrency exchange, has been under international scrutiny for its alleged involvement in money laundering and sanctions evasion. Recently, Aleksej Besciokov, a co-founder of the exchange, was arrested in India at the request of U.S. authorities. This article provides a detailed overview of the arrest, the charges against Besciokov, and the implications for Garantex and the broader cryptocurrency market.The Arrest of Aleksej BesciokovAleksej Besciokov, a 46-year-old Lithuanian national, was arrested in Varkala, Kerala, India, while vacationing with his family. The arrest was made under an Interpol red corner notice issued at the request of the U.S. Department of Justice. Besciokov faces charges related to facilitating money laundering and violating U.S. sanctions.Garantex: A BackgroundThe U.S. government sanctioned Garantex in April 2022 for facilitating money laundering and other illicit activities. The exchange has been implicated in laundering billions of dollars for transnational criminal and cybercriminal organizations, including those linked to North Korea. Despite the sanctions, Garantex continued to operate, processing over $60 billion in transactions.Charges and Allegations Against BesciokovBesciokov is accused of being the primary technical administrator of Garantex, approving transactions linked to hackers and cybercriminals. He is charged with conspiracy to commit money laundering, violating the International Economic Emergency Powers Act, and operating an unlicensed money transmitting business. Another co-founder, Aleksandr Mira Serda, is also charged and currently resides in the UAE.International ResponseThe U.S. Secret Service seized Garantex’s websites and froze over $26 million in cryptocurrency linked to the exchange. German and Finnish authorities have also seized servers hosting Garantex’s operations. Besciokov is set to appear in a Delhi court as part of extradition proceedings.Impact on Garantex and the Cryptocurrency MarketFollowing the arrest and international actions, Garantex has suspended its operations and proposed a plan to compensate users for blocked assets. This arrest highlights the increased regulatory scrutiny of cryptocurrency exchanges and their role in money laundering. The case may set a precedent for international cooperation in policing cryptocurrency exchanges.The arrest of Aleksej Besciokov marks a significant step in the global effort to combat money laundering through cryptocurrency exchanges. As regulatory bodies continue to crack down on illicit activities, the cryptocurrency market may face increased scrutiny and regulation.
