Garantex Crypto Exchange Seized, Two Charged in Laundering Scheme – Source:hackread.com

International law enforcement disrupts Garantex, a multi-billion-dollar cryptocurrency exchange used for money laundering. Two individuals, Aleksej Besciokov and Aleksandr Mira Serda, face charges. Learn about the operation and its impact.

A cryptocurrency exchange, Garantex, suspected of facilitating significant financial crimes, has been dismantled by law enforcement agencies from the United States, Germany, and Finland through a collaborative effort.

The operation aimed to disrupt the exchange’s infrastructure and financial activities, which is believed to be involved in money laundering activities for transnational criminal groups and violations of international sanctions.

The operation has led to the unsealing of an indictment (accessible here )  in the Eastern District of Virginia and filing of criminal charges against two individuals – “Aleksej Besciokov, 46, a Lithuanian national and Russian resident, and Aleksandr Mira Serda (previously Aleksandr Ntifo-Siaw), 40, a Russian national and United Arab Emirates resident,” suspected of holding key positions in the exchange’s operations.

Law enforcement executed a seizure order against Garantex.org, Garantex.io, and Garantex.academy, and servers hosting Garantex’s operations were seized by German and Finnish law enforcement, along with seizing $28 million in crypto.

According to court documents, Besciokov served as Garantex’s primary technical administrator, responsible for maintaining critical infrastructure and approving transactions. Mira Serda, the exchange’s co-founder and chief commercial officer, oversaw commercial operations. The suspects are charged with money laundering conspiracy. Besciokov faces additional charges of conspiracy to violate sanctions and conspiracy to operate an unlicensed money-transmitting business.

Garantex is suspected of facilitating multi-billion-dollar money laundering activities, facilitating crimes such as hacking, ransomware attacks, terrorism financing, and drug trafficking, often impacting US victims. Since its inception in April 2019, the exchange reportedly, processed at least $96 billion in cryptocurrency transactions, involving transnational criminal organizations, including those with alleged ties to terrorism, and violations of international sanctions.

Investigators claim that Besciokov and Mira Serda were aware of the illicit nature of funds being laundered through Garantex and actively sought to conceal these activities. They provided incomplete information to Russian law enforcement and falsely claimed accounts were not verified.

Despite being sanctioned by the US Department of the Treasury in April 2022 for facilitating money laundering for ransomware actors and darkweb markets, including Conti, Black Basta, and Hydra, Garantex continued to operate. That’s because its operators allegedly redesigned the company’s operations to evade sanctions, including frequently changing cryptocurrency wallet addresses.

The investigation involved the German Federal Criminal Police Office, Frankfurt General Prosecutor’s Office, Dutch National Police, Europol, Finnish National Bureau of Investigation, Estonian National Criminal Police, and Tether and blockchain analytics firm Elliptic.

The indictment claims that Garantex’s clients included North Korea’s Lazarus Group, Russian oligarchs, and TGR Group, and a public appeal has been issued for those suspected of being victims to contact law enforcement.