U.S. Department of Justice Acts Against Cryptocurrency Exchange Garantex for Money Laundering and Sanctions Violations
In a significant law enforcement operation, the U.S. Department of Justice (DOJ) announced a coordinated effort with German and Finnish authorities to disrupt the operations of Garantex, a cryptocurrency exchange allegedly linked to massive money laundering activities and violations of international sanctions. Since its inception in April 2019, Garantex has processed transactions exceeding $96 billion, making it a key player in the criminal financial landscape.
Indictments Unsealed
As part of this initiative, an indictment was unsealed in the Eastern District of Virginia against two individuals: Aleksej Besciokov, 46, a Lithuanian national residing in Russia, and Aleksandr Mira Serda, 40, a Russian national based in the United Arab Emirates. Both individuals face multiple charges, including conspiracy to commit money laundering and conspiracy to operate an unlicensed money transmitting business. Besciokov is additionally charged with conspiracy to violate sanctions under the International Emergency Economic Powers Act.
Court documents reveal that during their years of operation from 2019 to 2025, Besciokov and Mira Serda played pivotal roles in managing Garantex. Besciokov served as the primary technical administrator, overseeing critical infrastructure, while Mira Serda co-founded the exchange and served as its chief commercial officer.
Facilitation of Criminal Activity
The indictment detailed Garantex’s alleged involvement in facilitating a variety of serious crimes, including hacking, ransomware attacks, terrorism financing, and drug trafficking, which had a profound impact on victims in the United States. Both defendants purportedly were aware that illicit funds were being laundered via Garantex and undertook efforts to mask these activities from authorities. For instance, when approached by Russian law enforcement regarding accounts linked to Mira Serda, Garantex reportedly supplied incomplete information and misrepresented the status of the account.
In response to the growing scrutiny, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned Garantex on April 5, 2022, citing its facilitation of money laundering for ransomware actors and darknet operations. Notwithstanding these sanctions, the indictment suggests that Besciokov and his associates continued to engage with U.S.-based entities, even restructuring Garantex’s operations to sidestep compliance measures, thereby allowing U.S. businesses to unknowingly transact with the exchange.
Law Enforcement Action
As part of the operation, U.S. law enforcement officials executed a seizure order authorized by a judge, targeting three domain names associated with Garantex operations: Garantex.org, Garantex.io, and Garantex.academy. These domains were integral to Garantex’s infrastructure and the seizure will impede further criminal activities. Individuals attempting to access these sites are now greeted with a notification explaining the action taken by law enforcement.
In conjunction with U.S. actions, law enforcement in Germany and Finland seized additional servers that were hosting Garantex’s operations. U.S. authorities have also frozen over $26 million in assets linked to Garantex’s money laundering efforts.
Potential Penalties
The charges against Besciokov and Mira Serda carry severe penalties. Each faces a maximum prison sentence of 20 years for conspiracy to commit money laundering, while Besciokov also faces charges under the International Emergency Economic Powers Act, which could yield an additional 20 years, along with a five-year maximum for operating an unlicensed money transmitting business.
Ongoing Investigation
The DOJ’s announcement was made by various officials, including Supervisory Official Matthew R. Galeotti and U.S. Attorney Erik S. Siebert. The investigation is being conducted by the U.S. Secret Service (USSS) and the FBI’s Cyber Division, with support from the National Security Division and Office of International Affairs.
The DOJ expressed gratitude for the collaborative efforts of international partners, including the German Federal Criminal Police Office and Europol, alongside companies like Tether and blockchain analytics firm Elliptic for their assistance in the investigation.
Individuals who believe they may have been victims of Garantex’s activities or who have claims related to restraining funds are encouraged to contact law enforcement at [email protected].
It is important to note that an indictment is a formal accusation and all defendants are presumed innocent unless proven guilty in a court of law. The legal proceedings are set to continue as the investigation unfolds.
Share this article:
