Key Event
On March 13, 2025, Indian authorities arrested Aleksej Bešciokov, a Lithuanian national and alleged co-founder of the sanctioned Russian cryptocurrency exchange Garantex, in Kovalam, Kerala. The arrest followed a joint operation involving Interpol, Indian cybersecurity agencies, and EU law enforcement. Bešciokov now awaits extradition to Lithuania on charges of money laundering, sanctions evasion, and facilitating ransomware transactions.
Background
- Garantex’s Illicit Operations: Sanctioned by the U.S. in 2022 and the EU in February 2025, Garantex allegedly laundered over $4.3 billion for ransomware gangs, darknet markets, and Russian entities evading sanctions.
- Rebranding to Grinex: As reported by FinTelegram, Garantex attempted to relaunch as Grinex after its March 6 shutdown, moving liquidity via ruble-backed stablecoins (A7A5) and obfuscating transaction histories.
- Tether Freezes: Days before the shutdown, Tether blacklisted 2.5 billion USDT tied to Garantex, destabilizing its operations.
Read our Garantex reports here.
Arrest Details
- Location: Bešciokov was tracked to a luxury villa in Kovalam, a coastal town in Kerala, using blockchain forensics and surveillance of his digital footprint.
- Charges: Lithuanian prosecutors accuse him of directing Garantex’s sanctions evasion framework, including processing transactions through Russian banks like Sberbank and VTB.
- Extradition: India fast-tracked proceedings under a bilateral treaty with Lithuania. If convicted, Bešciokov faces up to 15 years in prison.
Context and Implications
- Crackdown on Sanctioned Entities: The arrest signals intensified global coordination against crypto platforms aiding Russian sanctions evasion.
- Role of Stablecoins: Garantex’s reliance on A7A5 ruble-pegged stablecoins highlights regulatory gaps in tracking algorithmic stablecoins.
- Impact on Grinex: Analysts speculate Grinex’s operations may falter without Bešciokov’s technical expertise, though successor administrators remain at large.
Expert Analysis
- Interpol Statement: “This arrest disrupts a critical node in the crypto-crime ecosystem. Garantex served as a financial lifeline for Russian cybercriminals.”
- Dr. Anika Rao (CISO, Chainalysis): “Bešciokov’s capture demonstrates how blockchain analytics can unmask pseudonymous actors, even in offshore havens.”
Conclusion
Bešciokov’s arrest underscores the growing risks for crypto exchanges facilitating illicit finance. While Garantex’s infrastructure persists through Grinex, enforcement agencies are leveraging cross-border collaboration to target key personnel. FinTelegram will monitor extradition proceedings and Grinex’s activity for signs of systemic collapse or adaptation.
