Lithuanian Co-Founder of Sanctioned Crypto Exchange Garantex Arrested in India

Aleksej Besciokov, a 46-year-old Lithuanian national and co-founder of the sanctioned Russian cryptocurrency exchange Garantex, was arrested in India while on vacation. The arrest, carried out by Indian authorities including the Central Bureau of Investigation (CBI) and the Kerala Police, in collaboration with U.S. authorities, marks a significant development in the ongoing efforts to combat financial crimes facilitated by cryptocurrency exchanges.

Besciokov faces charges of money laundering conspiracy, violating sanctions conspiracy, and operating an unlicensed money transmission business. The U.S. government had previously sanctioned Garantex in 2022, citing its involvement in illicit activities, including the laundering of illicit proceeds from ransomware attacks. The arrest is expected to have implications for the broader cryptocurrency industry, as it highlights the increasing scrutiny and enforcement actions against exchanges involved in money laundering and other financial crimes.

Last week, an international law enforcement operation composed of the United States, Germany, and Finland seized Garantex's servers and domain names, and froze nearly $28 million in encrypted assets, with assistance from stablecoin issuer Tether. This operation underscores the international cooperation in law enforcement efforts to combat financial crimes, with Indian authorities playing a crucial role in apprehending a high-profile fugitive wanted by the U.S. government.

The arrest of Besciokov is a clear indication of the global efforts to crack down on cryptocurrency exchanges that facilitate illicit activities. It also serves as a warning to other exchanges that may be involved in similar activities, as the international community continues to increase its scrutiny and enforcement actions against financial crimes facilitated by cryptocurrencies. The cooperation between Indian and U.S. authorities in this case highlights the importance of international collaboration in combating financial crimes, and sets a precedent for future law enforcement efforts in this area.