Indian Authorities Arrest Garantex Co-Founder Amid U.S. Allegations of Money Laundering and Sanctions Violations

• Indian police recently apprehended Aleksej Besciokov, co-founder of the Garantex crypto exchange, following a request from the US based on serious allegations.

• The US Department of Justice has seized Garantex domains and frozen assets, linking the exchange to significant criminal activities including ties to North Korean hackers.

• Besciokov now faces potential extradition to the US for multiple charges, including operating an unlicensed money-transmitting business.

The recent arrest of Garantex co-founder Aleksej Besciokov highlights escalating enforcement against crypto-related financial crimes, drawing international attention.

Besciokov to be Extradited to the US

According to TechCrunch, Indian authorities arrested Aleksej Besciokov in Kerala, following the United States’ extradition request. This action comes in the wake of an indictment from the US Department of Justice (DOJ) that was made public on March 7, underscoring the increasing collaboration between countries to combat cryptocurrency-related crime.

The DOJ has leveled serious accusations against Besciokov and fellow co-founder Aleksandr Mira Serda, claiming they violated US sanctions while engaging in money laundering and running an unlicensed money transfer business. The DOJ seeks Besciokov’s extradition to the Eastern District of Virginia, where he is expected to face trial.

In a concerted effort to tackle Garantex’s operations, the US Secret Service, in conjunction with law enforcement in Germany and Finland, executed a significant seizure of three Garantex domains (Garantex.org, Garantex.io, Garantex.academy) along with related server infrastructure on March 6. In this operation, they also froze $28 million in cryptocurrency assets linked to the exchange.

The indictment asserts that Besciokov was a key technical administrator for Garantex, responsible for the exchange’s infrastructure and transaction approvals. Notably, the authorities allege he permitted transactions associated with state-backed hackers from North Korea, notably the Lazarus Group, which is infamous for high-profile hacks, including the recent incident involving Bybit.

Established in Russia, Garantex has been under the scrutiny of US and EU officials since 2022 due to allegations of facilitating money laundering for international criminal networks. These networks include terrorist factions, ransomware operators, drug traffickers, and others engaged in sanctions evasion. This scrutiny reflects **increasing global regulatory pressure** on cryptocurrency exchanges.

From 2019 to 2025, Garantex reportedly processed upwards of $96 billion in cryptocurrency transactions, an astonishing amount that includes hundreds of millions believed to be linked to illicit activities. This extensive volume further raises concerns regarding the exchange’s compliance mechanisms and the broader implications for the cryptocurrency market.

After the recent culmination of events, Garantex issued an invitation for clients to participate in a face-to-face gathering in Moscow on March 10, 2025. The purpose appears to be strategizing a response to the unfolding situation, yet it remains uncertain if the exchange has managed to restore its usual operations in the aftermath of these significant legal challenges.

Importantly, Garantex is not an isolated case; several other cryptocurrency exchanges, such as FTX, BTC-e, GCG Asia/GCFX, and Thodex, have experienced similar scrutiny, reflecting a troubling trend in the crypto landscape where founders face legal battles.

Conclusion

As the arrest of Aleksej Besciokov exemplifies, regulatory scrutiny in the cryptocurrency sector is intensifying. The cooperation between international enforcement agencies highlights a significant move towards greater accountability in the crypto space. This situation raises crucial questions about the future operational landscape for exchanges facing legal challenges and compliance reviews as they navigate this complex environment. The trajectory of Garantex, in particular, provides crucial insights into evolving regulatory frameworks aimed at combating financial crimes in the digital asset ecosystem.