Crypto Exchange Co-Founder Arrested in India for Money Laundering

Law enforcement officials in India have arrested Aleksej Besciokov, the co-founder of Garantex, a cryptocurrency exchange that has been under scrutiny for its alleged involvement in money laundering and other financial crimes. Besciokov, a 46-year-old Lithuanian national, was apprehended while vacationing in the coastal town of Varkala, Kerala. The arrest was made in response to a request from the United States, which has been investigating Besciokov for alleged money laundering, conspiracy to violate sanctions, and operating an unlicensed financial entity.

The arrest comes as part of a broader global crackdown on crypto-linked financial crimes. The U.S. Department of Justice unsealed an indictment against Besciokov and his associate, Aleksandr Mira Serda, charging them with money laundering, conspiracy to violate U.S. sanctions, and operating an unlicensed financial entity. Serda remains at large, and law enforcement agencies are actively tracking his whereabouts. Besciokov is expected to be extradited to the U.S. following legal proceedings in India.

Besciokov is accused of playing a key role in the Moscow-based exchange, which was sanctioned by the U.S. Treasury in 2022 for allegedly processing illicit transactions linked to ransomware, drug trafficking, and cybercrime. Prosecutors claim that the platform facilitated financial transactions for Russian criminal organizations, including groups responsible for hacking and extortion schemes targeting American businesses and institutions. The arrest followed a provisional warrant issued by the Additional Chief Judicial Magistrate of Patiala House Court in New Delhi, with the Central Bureau of Investigation (CBI) and Kerala Police coordinating efforts based on an Interpol Red Notice issued at the request of U.S. authorities.

B. Gopakumar, deputy superintendent of police in Varkala, stated that the accused was traced based on intelligence received from Interpol and international law enforcement agencies. Besciokov will be remanded for two days in Kerala before being transferred to Delhi for extradition proceedings. The arrest highlights the increasing cooperation between international law enforcement agencies in the fight against cryptocurrency fraud. The U.S. and Indian authorities worked together to apprehend Besciokov, demonstrating the effectiveness of international cooperation in this area.

Authorities allege that from 2019 to 2025, Garantex handled hundreds of millions of dollars in illicit transactions, including ransomware payments from groups such as Conti, Black Basta, and Play. The U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated Garantex a high-risk entity, effectively removing it from the global financial system. The arrest of Besciokov is likely to increase pressure on Garantex and other cryptocurrency exchanges to comply with international regulations and to increase transparency in their operations. This event underscores the ongoing efforts by global authorities to combat financial crimes in the cryptocurrency sector and to ensure that exchanges operate within the bounds of the law.