India Apprehends Crypto Exchange Administrator Tied to Cybercrime; US Issues Indictment

India's Central Bureau of Investigation has detained Aleksej Besciokov, a cryptocurrency exchange administrator sought by the US for alleged cybercrime activities connected to a Russian exchange.

India's investigative agency has apprehended Aleksej Besciokov, a Lithuanian citizen residing in Russia, who is wanted by the United States for his involvement in laundering money for cybercriminals. The arrest occurred in the state's southern region, Kerala, on Tuesday. According to the US Justice Department (DOJ), Besciokov has been identified as an administrator of Garantex, a Russian cryptocurrency exchange.

The DOJ claims he was instrumental in overseeing transaction assessments and approvals within the platform. While detained, Besciokov has not yet provided any statements regarding his indictment, and efforts to reach Garantex for comment have been unsuccessful. The DOJ's indictment, which emerged recently, indicated that Besciokov was believed to be residing in Russia, though the details on his arrival in India remain elusive.

In a statement, India's Central Bureau of Investigation disclosed that the provisional arrest warrant was issued at the request of US authorities. Besciokov is expected to be presented before a Delhi court, although a timeline for his extradition to the United States remains uncertain.

In a collaborative effort, the US, alongside Germany and Finland, dismantled the online framework supporting Garantex, which the DOJ claims facilitated around $96 billion in cryptocurrency transactions since 2019. The exchange has allegedly funneled numerous millions in illicit proceeds that contributed to various criminal activities, including hacking, ransomware incidents, and drug trafficking.

Furthermore, the DOJ has accused Besciokov of sanctions violations and managing an unlicensed money transmitting operation. Last week, US officials filed charges against him and Garantex's Russian co-founder, Aleksandr Mira Serda, for money laundering offenses. In 2022, Garantex was already sanctioned by the US Treasury, following which Besciokov and other administrators reportedly redesigned their operations to circumvent sanctions and lure American businesses into partnerships, as outlined by the DOJ.