Indian police have arrested Aleksej Besciokov, the co-founder of Garantex, a Russian cryptocurrency exchange sanctioned by both the European Union and the U.S. government. Besciokov was detained under India’s extradition law in a move coordinated with international authorities, sources confirmed to TechCrunch.
The arrest took place on Tuesday at 4 p.m. local time in Varkala, a coastal town in the Indian state of Kerala. A police official involved in the operation stated that the Patiala House Court in New Delhi had issued the arrest warrant for Besciokov, acting on a request from U.S. authorities.
U.S. Links Besciokov to North Korean Hackers
Last week, the U.S. Department of Justice (DOJ) accused Besciokov of personally facilitating illicit transactions on Garantex, linking the exchange to cybercriminals and hackers affiliated with the North Korean government. The DOJ has charged him with money laundering, alleging that Garantex was used to process illicit funds on a global scale.
Indian officials confirmed Besciokov’s detention in a statement on Wednesday, revealing that authorities moved swiftly to prevent him from fleeing the country. The arrest was made in direct response to an extradition request from the U.S.
U.S. Justice Department spokesperson Nicole Oxman confirmed the arrest, stating that Besciokov was taken into custody in India at Washington’s request. However, she declined to provide further details.
Following the arrest, Besciokov appeared before a local court in Kerala. Authorities plan to transfer him to New Delhi’s Patiala Court on Monday to face further legal proceedings.
Garantex Faces Crackdown Amid Sanctions
The arrest is part of a broader crackdown on Garantex and its operations. The DOJ previously unsealed indictments against Besciokov and his co-founder, Russian national Aleksandr Mira Serda, who currently resides in the United Arab Emirates. Prosecutors allege that the duo restructured Garantex to bypass U.S. sanctions, tricking American businesses into engaging with the platform illegally.
Last week, the U.S. Secret Service seized Garantex’s websites, following the DOJ’s legal action. Additionally, U.S. authorities froze over $26 million in cryptocurrency assets linked to the exchange.
In response, Garantex has suspended its trading operations. The company has invited affected users to attend in-person meetings at its Moscow office to discuss potential asset recovery. In a press release sent to TechCrunch, the exchange claimed it was committed to compensating users for blocked funds. It stated that Garantex would use existing assets within Russia’s jurisdiction to facilitate reimbursement through a process similar to financial institution rehabilitation.
The statement also noted that Garantex would permanently shut down its operations after completing the compensation process, with only its compliance department remaining functional for regulatory obligations.
As global authorities tighten their grip on illicit cryptocurrency activities, the case against Garantex underscores growing efforts to curb financial crimes linked to sanctioned entities. Besciokov’s extradition proceedings will likely shed further light on how crypto exchanges operate in the shadow of international regulations.
