US and European law enforcement agencies recently made a significant breakthrough in disrupting Garantex, a Russia-linked crypto exchange accused of laundering billions of dollars for cybercriminals, drug traffickers, and sanctioned entities. The Justice Department announced on Friday that in a coordinated operation with Germany and Finland, multiple domains associated with Garantex were seized and over $26 million in assets linked to illicit transactions were frozen. Law enforcement in Germany and Finland also took control of servers supporting the platform’s operations.
The crackdown was accompanied by the unsealing of an indictment in the Eastern District of Virginia against Aleksej Besciokov, a Lithuanian national residing in Russia, and Aleksandr Mira Serda, a Russian national based 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.
Authorities alleged that Garantex processed at least $96 billion in crypto transactions since its establishment in April 2019, enabling various criminal activities such as ransomware payments, darknet drug sales, and financial transactions linked to terrorist organizations. Besciokov, identified as Garantex’s primary technical administrator, was said to have managed the platform’s infrastructure and approved transactions, while Mira Serda, a co-founder and chief commercial officer, oversaw its business operations.
Prosecutors claimed that 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 shuffled its crypto holdings between wallets daily, complicating compliance efforts at major exchanges.
US Attorney Erik S. Siebert of the Eastern District of Virginia emphasized the global commitment to dismantling such criminal networks, stating that Garantex served as a haven for criminals seeking to launder illicit funds through crypto. The exchange, which operated post-OFAC designation, failed to register with the Financial Crimes Enforcement Network (FinCEN) as required for money service businesses in the US.
On March 6, the US Secret Service seized three Garantex-related domains — Garantex.org, Garantex.io, and Garantex.academy — redirecting visitors to a law enforcement notice announcing the takedown. If convicted, Besciokov and Mira Serda could each face up to 20 years in prison for money laundering conspiracy, with Besciokov potentially facing an additional 25 years for sanctions violations and running an unlicensed money-transmitting business.
The FBI and the US Secret Service spearheaded the investigation, with support from Europol and law enforcement agencies in Germany, Finland, the Netherlands, and Estonia. Blockchain analytics firm Elliptic and stablecoin issuer Tether contributed to identifying illicit transactions associated with Garantex. 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.