Alexsej Besciokov: Arrested Crypto Kingpin and Transnational Criminal Activities

Alexsej Besciokov, a Lithuanian crypto kingpin and co-founder of Garantex, was arrested in India at the request of U.S. authorities. He faces multiple charges, including money laundering and conspiracy to violate sanctions, in connection with significant financial crimes associated with ransomware and cybercriminal organizations. His arrest underscores the challenge of combating illicit finance in the cryptocurrency space.

Alexsej Besciokov, a Lithuanian national and alleged cryptocurrency kingpin, was arrested by the Kerala police in India at the request of U.S. authorities. The 46-year-old was apprehended in Varkala while vacationing with his family and was reportedly planning to flee the country. The precise reason for his presence in India remains uncertain.

The Central Bureau of Intelligence of India confirmed that the foreign ministry issued a provisional arrest warrant based on a request from Washington. Besciokov is a resident of Russia and co-founder of Garantex, a cryptocurrency exchange that faced U.S. sanctions in 2022. He is accused of facilitating money laundering operations with transnational crime syndicates and cybercriminal organizations.

Following an indictment unsealed by the U.S. Department of Justice on March 7, Besciokov is featured on the U.S. Secret Service’s Most Wanted list. The indictment also names Aleksandr Mira Serda, a 40-year-old Russian national residing in the UAE and co-founder of Garantex, highlighting their connection to illicit financial activities.

Charges against Besciokov include conspiracy to violate sanctions, money laundering, and operating an unlicensed money transmitting business. The CBI asserts that he profited from laundering funds linked to ransomware attacks, hacking, and narcotics. Between 2021 and 2024, Garantex allegedly processed millions of dollars from ransomware groups such as Black Basta, Play, and Conti.

Since April 2019, Garantex has orchestrated transactions totaling approximately $96 billion in cryptocurrency. Recently, a coalition of U.S., German, and Finnish law enforcement agencies seized Garantex’s domains and servers, successfully freezing nearly $28 million in cryptocurrency associated with the platform. Furthermore, it is reported that Garantex laundered money for criminal organizations, including North Korea’s Lazarus Group, while evading sanctions. Recent analysis by blockchain research firm TRM Labs indicated that the dismantling of Garantex signifies a critical development in combating illicit finance, albeit cautioning that such exchanges frequently attempt to circumvent restrictions through the creation of new entities.

The arrest of Alexsej Besciokov marks a significant moment in the ongoing battle against financial crimes associated with cryptocurrency. His involvement with Garantex, alongside the magnitude of money laundering activities linked to ransomware and cybercrime, showcases the challenges faced by law enforcement globally. This incident highlights the continuous efforts necessary to address illicit financing within the cryptocurrency sector.

Original Source: www.livemint.com