Disruption of Garantex Crypto Exchange
US and European law enforcement agencies recently disrupted Garantex, a Russia-linked crypto exchange accused of laundering billions of dollars for cybercriminals, drug traffickers, and sanctioned entities. The Justice Department made the announcement on Friday, revealing the coordinated efforts that led to the seizure of multiple domains associated with Garantex and the freezing of over $26 million in assets linked to illicit transactions.
Operation Details
- US authorities seized domains and froze assets
- Law enforcement in Germany and Finland took control of servers
- Indictment unsealed against two individuals
The crackdown on Garantex coincided with the unsealing of an indictment in the Eastern District of Virginia against Aleksej Besciokov, a Lithuanian national, and Aleksandr Mira Serda, a Russian national residing in the UAE. Both individuals were charged with conspiracy to commit money laundering, with Besciokov facing additional charges of violating U.S. sanctions and operating an unlicensed money-transmitting business.
Allegations of Illicit Transactions
Authorities alleged that Garantex processed at least $96 billion in crypto transactions since its establishment in April 2019. The exchange facilitated various crimes, including ransomware payments, darknet drug sales, and financial transactions associated with terrorist organizations.
Key Allegations
- Processing of $96 billion in crypto transactions
- Facilitation of ransomware payments and darknet drug sales
- Transactions tied to terrorist organizations
According to prosecutors, the defendants knowingly concealed illegal activities on the exchange, obstructed Russian law enforcement inquiries, and continued processing transactions for US-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.
Seizure of Operations
On March 6, the US Secret Service seized three Garantex-related domains with a court order, redirecting visitors to a law enforcement notice. If convicted, Besciokov and Mira Serda could each face up to 20 years in prison for money laundering conspiracy.
Investigative Efforts
- FBI and US Secret Service led the investigation
- Assistance from Europol and international law enforcement agencies
- Role of blockchain analytics firm Elliptic and stablecoin issuer Tether
It is important to note that the charges against Besciokov and Mira Serda are allegations, and they are presumed innocent until proven guilty in court.
