US EU Joint Operation Shuts Down Garantex Crypto Exchange Stocks Plunge

In a significant move to combat money laundering, authorities from the United States and the European Union have successfully dismantled Garantex, a cryptocurrency exchange linked to Russia. The exchange is accused of facilitating illicit financial activities, including processing transactions for cybercriminals, drug traffickers, and sanctioned entities. The coordinated operation involved the seizure of multiple domains associated with Garantex and the freezing of over $26 million in assets linked to illicit transactions. Law enforcement in Germany and Finland also took control of servers supporting the platform’s operations.

The crackdown coincided with the unsealing of an indictment in the Eastern District of Virginia against Aleksej Besciokov, a Lithuanian national residing in Russia, and Aleksandr Mira Serda, a Russian national based in the United Arab Emirates. Both individuals are charged with conspiracy to commit money laundering. Besciokov faces additional charges of violating U.S. sanctions and operating an unlicensed money-transmitting business. Prosecutors allege that Garantex processed at least $96 billion in crypto transactions since its inception in April 2019, facilitating a broad spectrum of crimes, including ransomware payments, darknet drug sales, and financial transactions tied to terrorist organizations.

Besciokov, identified as Garantex’s primary technical administrator, allegedly managed the platform’s infrastructure and approved transactions, while Mira Serda, a co-founder and chief commercial officer, oversaw its business operations. Prosecutors claim that the defendants knowingly concealed illegal activities on the exchange, obstructed Russian law enforcement inquiries, and continued processing transactions for U.S.-based entities despite being sanctioned by the Treasury Department’s Office of Foreign Assets Control (OFAC) in April 2022. To evade sanctions, Garantex allegedly moved its crypto holdings between wallets daily, making it difficult for compliance teams at major exchanges to block transactions.

On March 6, the U.S. Secret Service, with a court order, seized three Garantex-related domains — Garantex.org, Garantex.io, and Garantex.academy — redirecting visitors to a law enforcement notice stating the sites had been taken down. If convicted, Besciokov and Mira Serda each face up to 20 years in prison for money laundering conspiracy. Besciokov could face an additional 25 years for sanctions violations and running an unlicensed money-transmitting business. The FBI and the