Indian authorities have apprehended Aleksej Besciokov, a co-founder of the sanctioned Russian cryptocurrency exchange Garantex, following an extradition request from the United States. The arrest took place in Varkala, Kerala, at 4 p.m. local time on Tuesday, according to state police officials.
The Extradition Warrant
The arrest was executed based on a warrant issued by the Patiala House Court in New Delhi. Indian government officials confirmed that the operation was prompted by U.S. authorities, noting that Besciokov was reportedly attempting to flee India at the time of his capture. He is currently being held in local custody and is expected to appear before the Patiala Court on Monday to address the formal charges.
U.S. Criminal Charges
The U.S. Department of Justice (DOJ) unsealed an indictment last week accusing Besciokov of facilitating large-scale money laundering. Prosecutors allege that he personally authorized transactions involving North Korean government-linked hackers and other cybercriminal syndicates.
Besciokov was indicted alongside Aleksandr Mira Serda, a Russian national and co-founder based in the United Arab Emirates. The DOJ claims the duo intentionally re-engineered Garantex’s operational structure to bypass U.S. sanctions and deceive American businesses into processing transactions through their platform.
Sanctions and Asset Seizure
Following the unsealing of the indictment, the U.S. Secret Service moved to seize Garantex’s web domains. Furthermore, U.S. authorities successfully froze over $26 million in cryptocurrency assets linked to the exchange. As reported by KrebsonSecurity, the enforcement action has dealt a significant blow to the platform’s viability.
Garantex’s Response
In the wake of the enforcement actions, Garantex has suspended its primary operations. The exchange issued a statement claiming it intends to fulfill its obligations to users by compensating for blocked assets using reserves held within the Russian Federation. The company stated that it will cease all activities—with the exception of its compliance department—once this rehabilitation procedure is finalized.
U.S. Justice Department spokesperson Nicole Oxman confirmed the arrest but declined to provide further details regarding the ongoing legal proceedings.