Crypto Laundering Case: Garantex Co-Founder Arrested in India While on Vacation

A high-profile case of crypto laundering has resulted in the arrest of Lithuanian national Aleksej Besciokov in India. The 46-year-old co-founder of Garantex, a Russian crypto exchange, was arrested by the Central Bureau of Investigation (CBI) and Kerala Police during a holiday visit to Varkala. Besciokov had a warrant in the United States for brokering illicit transactions on the Garantex, a platform accused of being used for digital currency scams and international financial crime. He was about to escape India when he was detained on a provisional arrest warrant asked for by the U.S. government.

The Man Behind the Crypto Laundering Case

Aleksej Besciokov, a Russian resident and Lithuanian citizen, co-founded in 2022 the U.S.-sanctioned cryptocurrency exchange Garantex. He, along with Aleksandr Mira Serda, supposedly laundered billions from illicit transactions. Garantex, according to U.S. officials, enabled international financial crime, operating at least $96 billion in illicit funds, including payments related to ransomware gangs and drug cartels.

Besciokov worked as a cog in the platform’s operation, keeping its services running. The authorities assert he assisted cybercriminals and sanctioned actors in bypassing financial sanctions. The crypto laundering case went global when the U.S., Germany, and Finland froze assets of $28 million and terminated Garantex’s domains. 

Criminal Charges and Law Enforcement Action

Besciokov has been indicted for various crimes in the United States, such as conspiracy to launder money, conspiracy to circumvent sanctions, and operating an unlicensed money-transmitting business. They are punishable for up to 20 years. According to the indictment, Garantex, between 2021 and 2024, millions of dollars were laundered in ransomware activity, such as Black Basta and Conti.

The government added that Besciokov’s deal was also linked to digital currency fraud by the North Korea-based Lazarus Group, a well-known cybercrime group. The U.S. Secret Service certified that Garantex enabled transactions to fund hacking, terrorism, and narcotics trafficking. The international enforcement action targeting Garantex to disrupt it highlights scrutiny of unregulated cryptocurrency exchanges enabling crime.

The U.S. Justice Department charged Besciokov on March 7, 2025. Acting in an expedited manner, the Indian Ministry of External Affairs authorized a provisional arrest warrant, and an integrated operation by CBI and Kerala Police resulted in the arrest of Besciokov on March 12. He was apprehended along with his family members and one other person.

Implications and Future of the Case

The crypto laundering case has initiated debates regarding governments’ regulation of cryptocurrency exchanges. Besciokov’s arrest is a milestone in the fight against global financial crime, affirming the position of international law enforcement in tracing and destroying illegal digital currency networks.

As the U.S. looks to have him extradited, the matter will now shift to India’s legal framework, with courts deciding his future. The CBI stated he would be brought before the Patiala House Court in Delhi. In the event of an extradition, he would be tried in the Eastern District Court of Virginia.

Global Crackdown on Crypto Crimes

The Indian police’s arrest of Aleksej Besciokov is an indication of the growing international crackdown on cryptocurrency-linked financial crimes. The crypto laundering case highlights the risk caused by unregulated exchanges. With the mounting pressure on governments to have stricter controls, the case serves as a warning to the participants in digital currency frauds and global money laundering. With the investigation ongoing, the verdict of Besciokov’s trial will be a benchmark for future enforcement against illegal crypto operations.