Secret Service Launches Operation Targeting Alleged Money Laundering Crypto Exchange
The U.S. Secret Service has launched a high-stakes operation aimed at bringing down the masterminds behind Russian crypto exchange Garantex, which is accused of facilitating hundreds of millions of dollars in illicit transactions.
According to a press release from the Secret Service, the agency is going after Garantex for allegedly using its platform to launder funds related to various criminal activities, including drug trafficking, hacking, and terrorist financing. The crypto exchange's operators, Russian national Aleksandr Mira Serda and Lithuanian national Aleksej Besciokov, are accused of knowingly facilitating these illicit transactions and concealing them from law enforcement by providing false or incomplete information.
Besciokov, who was arrested last week at the request of the U.S. government, is also charged with violating the International Economic Emergency Powers Act as well as operating an unlicensed money-transmitting business. These charges carry sentences of up to 20 years and five years, respectively.
As part of its operation, the Secret Service seized three website domain names used by Garantex and froze $26 million in funds on March 6th. Finnish and German authorities also seized servers linked with Garantex. The same day, Garantex announced it would be suspending its operations after stablecoin issuer Tether (USDT) blocked its platform's wallets, which contained about $28 million.
The operation marks a significant development in the growing scrutiny of cryptocurrency exchanges and their role in facilitating illicit activities. As law enforcement agencies continue to crack down on money laundering operations, it remains to be seen how this will impact the broader crypto market and its users.
Stay up-to-date with the latest news and developments in the world of cryptocurrency by following us on social media and subscribing to our newsletter. And don't forget to check out our daily dose of cryptocurrency news and insights, brought to you by The Daily Hodl team!