Indian Authorities Arrest Cryptocurrency Exchange Administrator Wanted by US
Background and Arrest
In a significant development, Indian authorities have apprehended Aleksej Besciokov, a cryptocurrency exchange administrator sought by the United States for allegedly facilitating money laundering for cybercriminals and violating international sanctions. The arrest took place on Tuesday in the southern state of Kerala, as confirmed by India’s top investigative agency, the Central Bureau of Investigation (CBI).
Besciokov, a citizen of Lithuania currently residing in Russia, was reportedly an administrator for Garantex, a Russian cryptocurrency exchange. His role involved reviewing and approving transactions on the platform. His detention comes at the request of US officials, who recently laid out a detailed indictment against him.
Details of the Charges
According to a statement from the US Justice Department (DOJ), Garantex has been a key player in the laundering of criminal proceeds, amassing an extensive network that processed approximately $96 billion (£74.10 billion) in cryptocurrency transactions since 2019. The DOJ alleges that the exchange was involved in various criminal activities, including hacking, ransomware, terrorism financing, and drug trafficking.
In its indictment, the DOJ charged Besciokov alongside Aleksandr Mira Serda, the Russian co-founder of Garantex, with money laundering. Both are accused of running an "unlicensed money transmitting business" and of implementing strategies to evade sanctions imposed by the US Treasury Department. Notably, Garantex was sanctioned by the US in 2022. Following the sanctions, the indictment claims that Besciokov and other exchange administrators restructured their operations to circumvent these restrictions and attract American businesses to their platform.
Current Status
As of now, Besciokov is in custody in India and has yet to provide any statement regarding the charges against him or his reasons for being in India, which remain unclear. He is set to be presented in a court in Delhi. The timeline for his extradition to the United States is still uncertain, as various legal processes must now unfold.
The CBI’s involvement underscores the increasingly collaborative efforts between Indian and US authorities in tackling international cybercrime and related activities. Following the arrest, Garantex has not responded to requests for comment, leaving many details surrounding the case open to speculation.
International Response and Implications
The US’s law enforcement efforts, in coordination with Germany and Finland, have already made substantial progress in dismantling the infrastructure that Garantex used for its operations. This operation highlights a growing international focus on regulating cryptocurrency exchanges, especially those suspected of being conduits for illicit activities.
With cryptocurrency’s role in global finance and crime continuing to evolve, the case against Besciokov and Garantex may serve as a pivotal point in the ongoing battle against cybercrime and financial manipulation on a worldwide scale.
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