Garantex Co-Founder Arrested in India

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• Indian authorities have arrested Lithuanian national Aleksej Bešciokov, co-founder of the cryptocurrency exchange Garantex
• Bešciokov is facing charges in the United States for money laundering and operating an unlicensed money-transmitting business
• The arrest was executed in Kerala, India, where Bešciokov was vacationing with his family

Indian law enforcement agencies have apprehended Aleksej Bešciokov, a Lithuanian national and co-founder of the cryptocurrency exchange Garantex, while he was on vacation in Kerala. Bešciokov is wanted in the United States on charges including money laundering and operating an unlicensed money-transmitting business. His arrest marks a significant development in international efforts to combat financial crimes associated with cryptocurrency platforms.  

From Holiday to Handcuffs

Bešciokov was arrested on March 12 in Varkala, Kerala by Indian authorities, in coordination with the Central Bureau of Investigation (CBI). The 46-year-old Lithuanian national was reportedly vacationing with his family when the arrest occurred, similar to the arrest of Alexander Vinnik in 2017.

The operation was conducted based on a provisional arrest warrant issued at the request of the United States, where Bešciokov faces multiple charges, including conspiracy to commit money laundering, conspiracy to violate sanctions, and conspiracy to operate an unlicensed money-transmitting business.

Garantex, the cryptocurrency exchange co-founded by Bešciokov, was sanctioned by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) in 2022 and the European Union two weeks ago. The platform was accused of facilitating transactions for ransomware groups and darknet markets, thereby enabling the laundering of illicit funds. According to the U.S. Department of Justice, Garantex processed at least $96 billion in cryptocurrency transactions since April 2019, a substantial portion of which was linked to criminal activities.

International Effort

Bešciokov’s arrest followed a series of coordinated actions by international law enforcement agencies. Just a week prior, authorities from the United States, Germany, and Finland seized Garantex’s domains and servers, freezing nearly $28 million in cryptocurrency assets associated with the exchange. These measures aimed to disrupt the platform’s operations and prevent further facilitation of illicit financial activities.

Bešciokov’s apprehension in India underscores the global nature of financial crimes involving cryptocurrencies and the collaborative efforts required to address them. The arrest was executed by Kerala Police, and Bešciokov is expected to be produced before the Patiala House Court in New Delhi, where extradition proceedings will commence.