- Indian police arrest Garantex co-founder Aleksej Bešciokov while he was vacationing in Kerala
- Bešciokov co-founder of the exchange may face up to 45 years in prison.
Indian police have arrested the co-founder of Garantex, a Russian cryptocurrency exchange that has been blacklisted by both the U.S. and European Union, under the country’s extradition law.
Aleksej Bešciokov the co-founder was reportedly on vacation with his family in Kerala when officials took him into custody. Garantex was banned by the U.S. in 2022 for allegedly helping criminal groups launder billions through its platform.
U.S. Charges and India’s Role in the Arrest
On March 7, the U.S. Department of Justice revealed an indictment against Aleksej Bešciokov and Aleksandr Mira Serda, a Russian national who currently lives in the UAE. They were both accused of operating Garantex to launder criminal funds.
The exchange, which launched in 2019, was sanctioned by the U.S. Treasury in April 2022 for continously handling illegal transactions that were linked to hacking, ransomware, terrorism, and drug trafficking.
Despite this restrictions, Garantex still reportedly processed over $60 billion, with different reports suggesting it helped Russian elites evade sanctions and launder more money from cybercrimes. The DOJ claims Bešciokov managed the platform’s technical operations, while Serda oversaw all the commercial activities.
India’s Central Bureau of Investigation (CBI) confirmed Bešciokov’s arrest in Kerala while he was on vacation with family. He is currently detained on the vasis of U.S. charges of money laundering, running an unlicensed financial service, and violating economic sanctions.
Kerala’s state police arrested him in Varkala at 4 p.m. local time on March 12, following a warrant issued by New Delhi’s Patiala House Court. Bešciokov is expected to be extradited under India’s Extradition Act of 1962.
Source: secretservice.gov
The U.S. law enforcement has frozen over $26 million linked to the exchange’s money laundering activities. Both Mira Serda and Aleksej Bešciokov would face a charge of conspiracy which could lead to a 20-year prison term.
Bešciokov also faces charges for violating economic sanctions, carrying another potential 20-year sentence, and for operating an unlicensed financial service, which could result in up to five years in prison. So, he’s currently standing on 45 years imprisonment.
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