Key Takeaways
- Arrest: Lithuanian national Aleksej Besciokov who is the co-founder of the cryptocurrency exchange Garantex was arrested in Varkala, Kerala, India, by local police in coordination with the Central Bureau of Investigation (CBI).
- Charges: Besciokov faces charges in the United States for conspiracy to commit money laundering, violating the International Economic Emergency Powers Act and operating an unlicensed money-transmitting business.
- Garantex’s Activities: Under Besciokov’s administration since 2019, Garantex allegedly processed at least $96 billion in cryptocurrency transactions. It facilitated money laundering for transnational criminal organizations, including those involved in hacking, ransomware, terrorism, and drug trafficking.
Thiruvananthapuram, India – In a significant arrest the Kerala police have apprehended Lithuanian national Aleksej Besciokov, co-founder of the cryptocurrency exchange Garantex wanted in the United States on multiple charges related to financial crimes.
Besciokov, 46, was arrested on Tuesday evening from a homestay in the coastal town of Varkala, Kerala. He was where believed to be vacationing with his family. The arrest was executed based on a provisional warrant issued by the Additional Chief Judicial Magistrate (ACJM) at Patiala House Court in New Delhi, following a request from the U.S. authorities under the Extradition Act of 1962.
According to U.S. Secret Service documents, since 2019, Besciokov allegedly “controlled and operated” Garantex anf facilitated money laundering amounting to at least $96 billion in cryptocurrency transactions. These transactions are believed to have supported transnational criminal organizations involved in activities such as hacking, ransomware attacks, terrorism, and drug trafficking, often impacting U.S. victims.
The U.S. Department of Justice has charged Besciokov with
- Conspiracy to commit money laundering, carrying a maximum sentence of 20 years in prison.
- Conspiracy to violate the International Economic Emergency Powers Act, also punishable by up to 20 years.
- Conspiracy to operate an unlicensed money-transmitting business, which can result in a maximum sentence of five years.
Deputy Inspector General of Police, Thiruvananthapuram Range, S. Ajeetha Begum noted that Besciokov attempted to resist arrest and even tried to bribe the officers but was unsuccessful.
Following his arrest, Besciokov was produced before a local court and remanded to the Thiruvananthapuram sub-jail. He is expected to be handed over to the CBI in the coming days, after which U.S. law enforcement agencies are anticipated to seek his extradition.
