A shocking arrest has been made by Indian authorities, as Aleksej Besciokov, alleged Russian operator of crypto exchange Garantex, was taken into custody. The Central Bureau of Investigation (CBI) arrested Besciokov in Kerala, where he was on vacation with his family, preventing him from escaping the country.
Brian Krebs, an information security analyst, reported that Besciokov, a 46-year-old Lithuanian national and Russian resident, was detained under India's extradition laws. The arrest is a significant development in the ongoing saga surrounding Garantex, which has been at the center of several high-profile controversies.
Besciokov operated Garantex between 2019 and 2022, using pseudonyms "proforg" and "iram," and collaborated with co-founder Aleksandr Mira Serda, a Russian national and resident of the United Arab Emirates. The exchange was accused of facilitating money laundering related to ransomware hacks, including Conti, Hydra, and Black Basta.
Last week, law enforcement from multiple countries, including Germany and Finland, seized Garantex servers and froze around $28 million in cryptocurrency. In 2022, the U.S. Office of Foreign Asset Control (OFAC) sanctioned Garantex for money laundering related to these ransomware hacks.
According to the indictment, Besciokov was the primary administrator, while Mira Serda was in charge of operations, particularly those involving commercial and marketing interests. The pair provided false information to Russian authorities and even concealed information about their activities, according to the Department of Justice.
Garantex servers were taken down with the collaboration of German and Finnish law enforcement agencies, including Garantex dot org, Garantex dot io, and Garantex dot academy. American authorities even discovered historical backups of Garantex servers, accessing customer information and accounting data. This helped authorities locate significant amounts of laundered money, amounting to $26 million, and froze the accounts with the help of Tether.
Besciokov traveled to Kerala, India, with his family, possibly to enjoy the beaches of Varkala and escape the troubles associated with the Garantex exchange. However, Indian law enforcement arrested the Russian resident at 4 p.m. and began the extradition process.
Lazarus Group, the North Korean hackers responsible for the $1.5 billion Bybit hack, which has been described as the biggest exchange hack in history, used Garantex to launder their money. Russian oligarchs, associated with TGR Group, evaded Western sanctions imposed after the Ukraine war, and used the Garantex exchange to send their money.
India's Extradition Act of 1962 allows America to transfer criminals for legal proceedings, which will be used to extradite Besciokov unless he disputes the case or, at best, delays the proceedings. Mira Serda, Garantex co-founder and Russian national, remains at large.
Besciokov and Serda could face up to 20 years for money laundering, but Besciokov may also face an additional 20 years for avoiding sanctions and 5 years for operating an illegal money-transmitting business.