India's Central Bureau of Investigation has arrested Lithuanian citizen Aleksej Bešciokov, accused of managing the Garantex exchange. This comes amidst international charges related to money laundering and sanctions evasion.
Arrest in India
Aleksej Bešciokov was detained in Kerala with coordination from national agencies while vacationing with his family, preparing to leave the country. The arrest was executed upon a warrant issued by US authorities.
US Charges
Bešciokov faces charges of conspiracy to commit money laundering, operating an unlicensed money-transmitting business, and violating the International Emergency Economic Powers Act. According to an indictment from the US District Court for the Eastern District of Virginia, Bešciokov and others allegedly used Garantex to launder proceeds from cybercrimes, such as ransomware, hacking, drug sales, and sanctions violations since 2019. He is expected to be extradited to the US under India’s Extradition Act of 1962.
Sanctions and International Implications
Bešciokov's arrest followed Tether freezing $27 million in USDT on Garantex, with the exchange halting withdrawals on March 6. In April 2022, Garantex was sanctioned by the US Treasury for failing to meet AML and CFT requirements. The European Union also sanctioned the platform, linking it to Russia’s invasion of Ukraine. These investigations are part of broader efforts against entities suspected of aiding Russian nationals in evading international sanctions using cryptocurrencies.
Bešciokov's arrest highlights worldwide efforts to tackle illegal financial flows in the crypto sphere. The Garantex situation may prompt further international legal actions, with Bešciokov's extradition to the US expected but possibly delayed by judicial processes.
