India Arrests Crypto Administrator with Russia Links Wanted by US
Aleksej Besciokov, a Lithuanian citizen and Russian resident, was arrested in the southern state of Kerala on Tuesday, according to India's top investigative agency. The 36-year-old crypto administrator is wanted by the US for allegedly helping cybercriminals launder money and violate sanctions.
Besciokov was one of the administrators of Garantex, a Russian cryptocurrency exchange, and was responsible for reviewing and approving its transactions. He is currently in custody and has not yet made a statement. Garantex could not be reached for comment at this time.
The US indictment: A web of cybercrime and sanctions evasion
According to the US Justice Department's (DOJ) recently-released indictment, Besciokov was "residing in Russia" when he was allegedly involved in laundering criminal proceeds through Garantex. It is unclear when and why he came to India.
The DOJ claims that Garantex processed at least $96 billion (£74.10 billion) in cryptocurrency transactions since 2019, with the exchange allegedly receiving hundreds of millions of dollars in criminal proceeds. These funds were then used to facilitate several crimes, including hacking, ransomware, terrorism, and drug trafficking.
The indictment also accuses Besciokov of violating sanctions and operating an "unlicensed money transmitting business". In 2022, Garantex was sanctioned by the US Treasury Department due to its involvement in malicious activities. However, Besciokov and other administrators allegedly "redesigned" the exchange's operations to evade sanctions and attract American businesses.
The online takedown: A coordinated effort
In a coordinated effort with Germany and Finland, the US took down Garantex's online infrastructure last week. This move aimed to disrupt the exchange's ability to launder money and facilitate cybercrime.
The DOJ described Garantex as "a key player in the international cryptocurrency ecosystem" that was used by cybercriminals to "evade detection and launder proceeds of crime". The US officials also charged Besciokov along with the exchange's Russian co-founder Aleksandr Mira Serda with money laundering.
The road ahead: Extradition and justice
Besciokov will now be produced in a court in Delhi, according to India's Central Bureau of Investigation (CBI). It is unclear when he will be extradited to the US. The Indian government has issued a provisional arrest warrant against Besciokov at the request of Washington.
The case highlights the ongoing efforts by law enforcement agencies around the world to combat cybercrime and sanctions evasion. As the cryptocurrency landscape continues to evolve, it is likely that we will see more high-profile arrests and indictments in the coming months.