Russian wanted in US for $96 billion cryptocurrency fraud arrested in Kerala
Besciokov had set up a cryptocurrency exchange allegedly to launder proceeds of criminal activities such as ransomware, computer hacking, narcotics transactions
Indian authorities have arrested Aleksej Besciokov, an administrator of Russian cryptocurrency exchange Garantex, who is allegedly involved in a massive $96 billion (over ₹8 lakh crore) cryptocurrency fraud, at Washington’s request.
The Central Bureau of Investigation (CBI) on Wednesday (March 12) confirmed that they intercepted Besciokov in Kerala as he was allegedly preparing to flee.
Besciokov, a Russian resident and Lithuanian national, had set up a cryptocurrency exchange 'Garantex', allegedly to launder the proceeds of criminal activities such as ransomware, computer hacking, and narcotics transactions. The US Justice Department charged him last week. While the US, Germany, and Finland dismantled Garantex’s online infrastructure, Reuters reported.
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According to the US Secret Service documents, Besciokov, over the period of nearly six years, allegedly controlled and operated Garantex, which facilitated money laundering to the tune of at least $96 billion (over ₹8 lakh crore) in cryptocurrency transactions by transnational criminal organisations (including terrorist organisations) and violated sanctions.
The exchange allegedly facilitated crimes like ransomware attacks, hacking, and drug trafficking which largely impacted US victims.
Wanted on multiple charges
Further, the documents revealed that Besciokov was wanted under multiple charges in the US, including conspiracy to commit money laundering.
He was wanted in the US for crimes including conspiracy to commit money laundering in violation of Title 18 of the US Code, conspiracy to violate the US International Emergency Economic Powers Act, and Conspiracy to operate an unlicensed money services business.
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Arrested in Thiruvanthapuram
India’s ministry of external affairs received a provisional arrest warrant earlier this week. The CBI, with Kerala police, arrested him in Thiruvananthapuram. He is expected to be presented before the Patiala House Court soon.
Major step
Blockchain firm TRM Labs noted that Garantex’s takedown is a major step against illicit finance. However, it warned that sanctioned exchanges often rebrand to evade restrictions.
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Washington is likely to seek Besciokov’s extradition.