Garantex Cryptocurrency Exchange Disrupted in International Operation
For Immediate Release: The Justice Department announced today a coordinated action with Germany and Finland to disrupt and take down the online infrastructure used to operate Garantex, a cryptocurrency exchange that allegedly facilitated money laundering by transnational criminal organizations – including terrorist organizations – and sanctions violations.
The Operation
Since April 2019, Garantex has processed at least $96 billion in cryptocurrency transactions. In conjunction with the operation targeting Garantex, the Department also announced the unsealing of an indictment in the Eastern District of Virginia against two administrators: Aleksej Besciokov and Aleksandr Mira Serda. Both men are charged with money laundering conspiracy and other serious crimes.
Aleksej Besciokov's Role
Besciokov, a 46-year-old Lithuanian national and Russian resident, was Garantex's primary technical administrator. He was responsible for obtaining and maintaining critical infrastructure, reviewing and approving transactions, and ensuring the platform's operations ran smoothly.
Conspiracy Charges
Besciokov is charged with conspiracy to violate sanctions and conspiracy to operate an unlicensed money transmitting business. Additionally, he faces one count of conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison.
Aleksandr Mira Serda's Role
Mira Serda, a 40-year-old Russian national and United Arab Emirates resident, was Garantex's co-founder and chief commercial officer. He controlled and operated the platform along with Besciokov.
Conspiracy Charges
Mira Serda is charged with money laundering conspiracy alongside Besciokov. The two men allegedly knew that criminal proceeds were being laundered through Garantex and took steps to conceal their involvement in facilitating illegal activities on the platform.
The Impact of Garantex
Garantex received hundreds of millions in criminal proceeds and was used to facilitate various crimes, including hacking, ransomware, terrorism, and drug trafficking. These activities often had a substantial impact on U.S. victims.
Evasion of Sanctions
The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned Garantex in April 2022 for its role in facilitating money laundering. Despite this, Besciokov and his co-conspirators continued to transact with U.S.-based entities and redesigned Garantex's operations to evade U.S. sanctions.
The Disruption of Garantex
As part of the coordinated action, German and Finnish law enforcement seized servers hosting Garantex's operations. U.S. law authorities have separately obtained earlier copies of Garantex's servers, including customer and accounting databases. Additionally, over $26 million in funds used to facilitate Garantex's money laundering activities have been frozen.
Victims and Claimants
Any individual who believes they are a victim whose funds were laundered through Garantex or may otherwise have a claim to restrained funds should reach out to law enforcement via email address GarantexClaimants@secretservice.gov.
Investigation and Prosecution
The FBI is investigating the case alongside the U.S. Attorney's Office for the Eastern District of Virginia. Assistant U.S. Attorneys Zoe Bedell and Tamara Livshiz are prosecuting the case, with assistance from the Justice Department's National Security Division and Office of International Affairs.
Critical Cooperation
The Justice Department recognizes critical cooperation from various law enforcement agencies, including the German Federal Criminal Police Office, the Dutch National Police, Europol, and others. The Department also thanks Tether and blockchain analytics firm Elliptic for their proactive assistance in this investigation.