U.S. and European law enforcement agencies have taken down Garantex, a Russia-linked cryptocurrency exchange accused of laundering billions of dollars for cybercriminals, drug traffickers, and sanctioned entities. The U.S. Department of Justice (DOJ) announced the enforcement action on Friday, marking a significant move against illicit financial activities in the crypto sector.
Coordinated Operation Seizes Assets and Domains
In a joint operation with Germany and Finland, U.S. authorities seized multiple domains associated with Garantex and froze over $26 million in assets tied to illicit transactions. Additionally, law enforcement agencies in Germany and Finland took control of the exchange’s servers, disrupting its ability to operate.
The crackdown coincided with the unsealing of an indictment in the Eastern District of Virginia against two individuals:
- Aleksej Besciokov, a Lithuanian national residing in Russia.
- Aleksandr Mira Serda, a Russian national based in the United Arab Emirates.
Both were charged with conspiracy to commit money laundering, while Besciokov faces additional charges for violating U.S. sanctions and operating an unlicensed money-transmitting business.
Garantex’s Alleged Role in Illicit Transactions
Authorities claim that since its launch in April 2019, Garantex processed at least $96 billion in cryptocurrency transactions, facilitating a range of illicit activities, including:
- Ransomware payments
- Darknet drug sales
- Financial transactions for terrorist organizations
Besciokov, identified as the platform’s primary technical administrator, allegedly managed Garantex’s infrastructure and approved transactions, while Mira Serda, a co-founder and chief commercial officer, oversaw business operations.
According to prosecutors, the defendants deliberately concealed illegal activities on the exchange, obstructed Russian law enforcement inquiries, and continued processing transactions for U.S.-based entities despite being sanctioned by the Treasury Department’s Office of Foreign Assets Control (OFAC) in April 2022.
To evade sanctions, Garantex allegedly moved its crypto holdings between wallets daily, making it difficult for compliance teams at major exchanges to detect and block transactions.
U.S. Attorney: A Haven for Criminals
U.S. Attorney Erik S. Siebert of the Eastern District of Virginia emphasized the severity of Garantex’s operations:
“Garantex was a haven for criminals seeking to launder illicit funds through crypto, and this takedown demonstrates our global commitment to dismantling such networks.”
The exchange, which continued operating after OFAC’s designation, never registered with the Financial Crimes Enforcement Network (FinCEN) as required for money service businesses in the U.S.
Seizure of Operations and Legal Consequences
On March 6, the U.S. Secret Service, acting under a court order, seized three Garantex-related domains— Garantex.org, Garantex.io, and Garantex.academy. Visitors to these sites are now redirected to a law enforcement notice confirming the takedown.
If convicted, Besciokov and Mira Serda each face up to 20 years in prison for money laundering conspiracy. Besciokov could receive an additional 25 years for sanctions violations and operating an unlicensed money-transmitting business.
Global Cooperation in Crypto Crime Investigation
The investigation was led by the FBI and the U.S. Secret Service, with crucial assistance from Europol and law enforcement agencies in Germany, Finland, the Netherlands, and Estonia. Additionally, blockchain analytics firm Elliptic and stablecoin issuer Tether played key roles in identifying illicit transactions tied to Garantex.
Legal Proceedings and Future Implications
The charges against Besciokov and Mira Serda remain allegations, and both are presumed innocent until proven guilty in court.
This takedown marks another major step in the global effort to combat financial crimes facilitated by cryptocurrency exchanges. Authorities worldwide are increasing scrutiny on platforms that fail to implement anti-money laundering (AML) measures, reinforcing the importance of compliance in the evolving crypto landscape.
