India Holds Lithuanian National in $96 Billion Crypto Laundering Scheme on US Request

Global Crackdown on Crypto Money Laundering

In a massive victory for international law enforcement, Indian authorities have arrested Lithuanian national Aleksej Besciokov, one of the most well-known players in Garantex, a cryptocurrency exchange that had reportedly been used by cybercriminals, drug traffickers, and terrorist organizations to launder billions of dollars. The United States has formally asked for Besciokov's extradition, a critical milestone in the global battle against illegal financial services within the cryptocurrency industry.

The Role of Garantex in Money Laundering

Garantex was founded in 2019 in Moscow, Russia, and quickly became known for offering anonymous cryptocurrency transactions. It was first registered in Estonia, but subsequently transferred to Russia, where it is said to have handled illegal transactions connected to criminal networks, including ransomware groups and terror organizations.

According to the U.S. Department of the Treasury, Garantex was a money laundering platform, where criminals could launder illicit funds via crypto transactions. The exchange had supposedly handled transactions involving the Lazarus Group, a North Korean cybercrime group that was involved in high-profile hacking activities.

➡ Read more about Lazarus Group's cybercrimes: U.S. Treasury Sanctions North Korean Hackers

The U.S. Crackdown on Garantex

The U.S. government has been working hard to dismantle illicit cryptocurrency platforms, and Garantex was a prime example. In April 2022, the U.S. Department of the Treasury sanctioned Garantex, cutting it off from the United States financial system.

March 2025: The coordinated effort of the U.S., Germany, and Finland led to the seizure of Garantex's online funds, freezing $26 million of illicit money. The U.S. unsealed the indictment of Besciokov and his alleged co-conspirator, Aleksandr Mira Serda, charging them with fraud and money laundering.

➡ Read the official U.S. Justice Department press release regarding the shutdown of Garantex: Justice.gov Report

How Besciokov Was Arrested in India

Though he is Russia-based, Besciokov was arrested this week in Kerala, India by the Central Bureau of Investigation (CBI). Indian authorities called him a "fugitive" wanted by the United States. It is not certain why Besciokov visited India, but experts feel he may have been attempting to evade extradition from Russia.

➡ Indian authorities' latest updates on the arrest: NDTV Report

The Bigger Picture: Cryptocurrency and Illicit Finance

Besciokov's arrest indicates a trend on the rise in the world of cryptocurrency—criminals exploiting soft regulatory environments to launder money anonymously in huge quantities.

Ransomware payments: Crypto exchanges like Garantex are utilized by cybercriminals to trade stolen money for untraceable assets.
Terrorist financing: There have been reports that some Palestinian militant groups financed their operations partly through crypto transactions on Garantex.
Evasion of sanctions: Following international sanctions against Russia, Garantex was found to be a big money transfer platform out of Russia, particularly with the use of stablecoins like Tether (USDT).

➡ More information on criminals and crypto usage: Reuters Report

What's Next? U.S. Extradition and Legal Proceedings

With Besciokov in Indian custody, the United States is expected to formally request his extradition to Virginia's Eastern District Court, where he faces serious money laundering charges. He could face decades behind bars if convicted.

➡ Learn more about U.S. extradition laws: U.S. State Department Guidelines

The Future of Crypto Regulation

The Garantex case has revived debate on crypto regulation, with experts calling for more control of digital asset exchanges.

Regulatory reforms in the pipeline include:

Tighter KYC (Know Your Customer) policies to prevent anonymous transactions.
Global cooperation to track and shut down illicit crypto operations.
Tighter penalties for non-compliant exchanges used for money laundering.

➡ Read about new global cryptocurrency regulations: CoinDesk Report

Conclusion: A Win for Law Enforcement

The closure of Garantex and Besciokov's arrest in India are a watershed moment in the war on crypto-based financial crime. The case illustrates the critical need for international cooperation in combating criminal activity in the $2 trillion cryptocurrency market.

As governments impose tighter controls and close down illicit exchanges, crypto platforms that fail to meet anti-money laundering (AML) laws can also be closed down.

The arrest of Aleksej Besciokov is a warning to bad actors—wherever they are found, global law enforcement is closing in.