US-Wanted Garantex Crypto Co-Founder Arrested in India

Indian state police arrested Lithuanian national Aleksej Besciokov, the co-founder of the sanctioned Russian cryptocurrency exchange Garantex, in the coastal municipality of Varkala, Kerala, on Tuesday afternoon under the country’s extradition law following a U.S. warrant charging him with facilitating money laundering for cybercriminals.

The Arrest in Kerala

Local authorities apprehended Besciokov at approximately 4:00 p.m. local time (3:30 a.m. PT). A Kerala state police official confirmed that the arrest warrant was formally issued by the Patiala House Court in New Delhi.

According to Indian government officials, the swift action was taken at the direct request of the U.S. government, as intelligence indicated that Besciokov was actively planning to flee India. Following his apprehension, he appeared before a local district court and will be transferred to the Patiala Court on Monday to face extradition proceedings.

A spokesperson for the U.S. Department of Justice, Nicole Oxman, confirmed the arrest in a brief statement, noting that Besciokov was detained at the request of the United States, though she declined to provide further details.

U.S. Charges and Money Laundering Allegations

The arrest follows a federal indictment unsealed by the U.S. Department of Justice last week. Prosecutors accuse Besciokov of personally approving high-value transactions on Garantex that were directly linked to North Korean government-backed hackers and various other notorious cybercriminals.

Evading International Sanctions

Besciokov was indicted alongside Russian national Aleksandr Mira Serda, another Garantex co-founder currently residing in the United Arab Emirates. U.S. prosecutors allege that the two administrators deliberately redesigned Garantex’s operational infrastructure to actively evade and violate U.S. sanctions, effectively tricking American businesses into unwittingly transacting with the blacklisted exchange.

In tandem with the criminal charges, the U.S. Secret Service seized Garantex’s official domains last week and froze more than $26 million in cryptocurrency assets tied to the platform.

Garantex Suspends Operations and Promises Compensation

In the wake of the U.S. crackdown, Garantex suspended its digital operations. However, the exchange has invited its clients to “face-to-face meetings” at its physical office in Moscow, Russia, claiming it has devised an unspecified strategy to address the blocked assets.

In a press statement, Garantex asserted that it does not intend to abandon its user obligations. The exchange announced plans to fully compensate users for their frozen assets using its remaining reserves located within the Russian Federation, utilizing a process modeled after financial institution rehabilitation procedures.

The company stated that once this asset rehabilitation procedure is finalized, Garantex will permanently cease all operations, with the sole exception of its compliance department.

The arrest was first reported by KrebsOnSecurity. Garantex did not provide a direct comment regarding Besciokov’s detention.