India Detains Crypto Exchange Administrator Tied to U.S. Sanctions Violations

The U.S. Department of Justice claims he played a key role in a Russian cryptocurrency exchange facilitating illegal transactions.

Authorities in India have apprehended Aleksej Besciokov, a cryptocurrency exchange administrator with ties to Russia, following a request from U.S. officials. Besciokov, who is a Lithuanian citizen and resides in Russia, was arrested in Kerala on a provisional warrant issued by India’s Central Bureau of Investigation (CBI).

The U.S. Department of Justice (DOJ) alleges that he was significantly involved with Garantex, a Russian cryptocurrency exchange, where he was responsible for approving transactions. The DOJ claims that Garantex has laundered substantial amounts of money and aided cybercriminals in evading financial sanctions.

He remains in custody, awaiting court proceedings in Delhi, although the timeline for potential extradition to the U.S. is still uncertain. As part of a coordinated international effort, U.S. authorities have recently dismantled the infrastructure associated with Garantex. The exchange has reportedly facilitated approximately $96 billion in cryptocurrency transactions since its inception in 2019, with a significant portion allegedly linked to criminal activities, including drug trafficking, ransomware, and other cybercrimes.

U.S. officials have also accused Besciokov along with Garantex's Russian co-founder, Aleksandr Mira Serda, of orchestrating a scheme to circumvent U.S. sanctions, prompting calls for heightened scrutiny of cryptocurrency operations worldwide.