Lithuanian Man Arrested in Kerala for Alleged Major Cryptocurrency Fraud Linked to Criminal Organizations
New Delhi – A Lithuanian national, identified as Aleksej Besciokov, was apprehended in Kerala after being wanted in the United States for his alleged involvement in a significant cryptocurrency fraud scheme. According to officials, Besciokov was in the process of fleeing the country at the time of his arrest.
Charges and Allegations
Besciokov is accused of having established and operated a cryptocurrency exchange known as ‘Garantex’, which allegedly served as a platform for laundering the proceeds of various criminal activities, including ransomware attacks, computer hacking, and narcotic transactions. The U.S. Secret Service has reported that Garantex facilitated the laundering of approximately $96 billion (over ₹8 lakh crore) in cryptocurrency transactions, with significant contributions from transnational criminal organizations, including known terrorist groups.
The documentation from U.S. authorities details that Garantex received hundreds of millions of dollars in illicit proceeds while facilitating a range of serious crimes that have had a considerable impact on victims in the United States. This includes high-profile incidents in hacking, ransomware schemes, and drug trafficking, raising concerns about the platform’s involvement in key areas of organized crime.
Role Within Garantex
According to the allegations, Besciokov served as the primary technical administrator of Garantex, responsible for the critical infrastructure of the exchange. His responsibilities included reviewing and approving transactions made on the platform, effectively managing the facilitation of these illegal activities. He is facing multiple charges in the U.S., including conspiracy to commit money laundering, violating the U.S. International Emergency Economic Powers Act, and operating an unlicensed money services business.
International Collaboration and Arrest
The United States government imposed sanctions on Besciokov in April 2022, recognizing the potential threat posed by his actions. In a significant development earlier this week, the Indian Ministry of External Affairs received a provisional arrest warrant from U.S. authorities. This prompted a coordinated operation by the Central Bureau of Investigation (CBI) and the Kerala police, resulting in Besciokov’s arrest in Thiruvananthapuram.
Following his arrest, Besciokov is expected to be presented before the Patiala House Court soon, as Indian authorities prepare to address the formal proceedings in light of the U.S. extradition request.
Implications of the Arrest
The arrest of Aleksej Besciokov highlights ongoing international efforts to combat cryptocurrency-related crimes, particularly those linked to global criminal networks. With cryptocurrency gaining prominence, authorities worldwide are prioritizing regulatory frameworks and enforcement actions to curb activities that facilitate illicit financial transactions.
Further developments in this case are anticipated as legal processes unfold, marking a notable instance of international law enforcement collaboration in the digital finance realm.
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