Indian authorities, at the request of Washington, have arrested a cryptocurrency exchange administrator for money laundering conspiracy and violating sanctions, as announced by India's leading crime-fighting bureau on Wednesday.
Last week, the United States, Germany, and Finland dismantled the online infrastructure of the Russian cryptocurrency exchange Garantex, with the U.S. Justice Department disclosing charges against two of the exchange's administrators.
Among those charged was Aleksej Besciokov, a Russian resident and Lithuanian national accused of money laundering, violating sanctions, and operating an unlicensed money-transmitting business, according to the Justice Department.
Besciokov was apprehended in the southern Indian state of Kerala, following a request from U.S. authorities, stated the Central Bureau of Investigation in India. The CBI further explained that, upon Washington's request, India's Ministry of External Affairs issued a provisional arrest warrant for Besciokov.
The CBI reported that Besciokov was allegedly planning to flee India, although the purpose of his presence there remains unclear. The U.S. is anticipated to seek Besciokov's extradition, yet his representative could not be reached immediately.
A spokesperson from the U.S. Justice Department confirmed to CNN, "I can confirm Aleksej Besciokov, one of the administrators of Garantex, was arrested in India at the request of the United States."
The U.S. Justice Department disclosed that Garantex has processed over $96 billion in cryptocurrency transactions since April 2019 and was sanctioned by the U.S. in April 2022.
TRM Labs, a blockchain research company, characterized the takedown of Garantex in a recent blog post as "a major milestone in the fight against illicit finance." Nonetheless, they cautioned that sanctioned exchanges often strive to circumvent restrictions by establishing new entities.