The U.S. Department of Justice (DOJ) has announced criminal charges against the administrators of a Russian cryptocurrency exchange, Garantex, for facilitating money laundering by criminal and terrorist organizations and violating U.S. sanctions. The two administrators, Aleksej Besciokov and Aleksandr Mira Serda, are accused of knowingly allowing illegal activities on their platform and concealing these actions. Garantex reportedly processed billions in cryptocurrency transactions, including those linked to hacking, ransomware, terrorism, and drug trafficking. The DOJ seized the official websites of Garantex and froze over $26 million in funds used for money laundering. Despite previous sanctions from Western governments, the exchange continued to operate in violation of U.S. laws.
Details of the Criminal Charges Against Garantex Administrators
In a significant legal move, the U.S. Department of Justice has unveiled criminal charges against the administrators of the Russian cryptocurrency exchange, Garantex. This development comes after an extensive investigation into the platform's role in facilitating financial crimes. The case centers around two key individuals: Aleksej Besciokov, a 46-year-old Lithuanian national residing in Russia, and Aleksandr Mira Serda, a 40-year-old Russian citizen living in the United Arab Emirates. Both men have been charged with conspiracy to launder money, while Besciokov faces additional charges for conspiring to violate U.S. sanctions and operating an unlicensed money transmitting business.
The indictment alleges that Garantex served as a conduit for hundreds of millions in illicit proceeds, aiding various criminal enterprises, including cyberattacks, ransomware operations, terrorism, and drug trafficking. Since 2019, the exchange has processed an astounding $96 billion in cryptocurrency transactions. Prosecutors claim that Besciokov personally approved transactions tied to notorious cybercriminal groups, such as North Korea’s Lazarus Group. Moreover, the DOJ asserts that Garantex deliberately provided incomplete information to Russian authorities when questioned about suspicious accounts, further evidencing their complicity in illegal activities.
The crackdown on Garantex is part of a broader effort by Western governments to combat Russian cybercrime. In 2022, the U.S. Treasury sanctioned Garantex for its involvement with darknet markets and illicit actors. Similarly, the European Union imposed sanctions in 2024, citing the exchange's close ties to EU-sanctioned Russian banks. Despite these measures, Garantex allegedly redesigned its operations to evade sanctions, frequently changing its cryptocurrency wallet addresses to avoid detection by U.S.-based exchanges.
Law enforcement agencies successfully seized Garantex's official websites, replacing them with banners announcing the seizure. Additionally, U.S. authorities froze over $26 million in funds associated with Garantex's money laundering activities. The exchange had already suspended all services following Tether's decision to block wallets holding more than $28 million. Garantex warned users about scammers posing as representatives offering to restore access to funds, emphasizing the need for vigilance in protecting personal data.
Both Besciokov and Mira Serda face up to 20 years in prison for money laundering conspiracy, with Besciokov facing an additional 25 years for other charges. It remains unclear whether they have been arrested, particularly Mira Serda, who resides in the UAE. The DOJ continues to investigate the full extent of Garantex's operations and the individuals involved.
From a journalist's perspective, this case underscores the critical importance of regulatory oversight in the cryptocurrency sector. The ease with which Garantex allegedly facilitated illegal activities highlights the vulnerabilities within the digital currency ecosystem. As governments worldwide strengthen their efforts to curb financial crimes, the crypto industry must adopt stricter compliance measures to prevent misuse. This case serves as a stark reminder of the potential consequences for platforms that prioritize profit over ethical and legal standards.