India arrests Russian-Lithuanian over crypto money laundering case

Indian law enforcement has detained Aleksej Besciokov, a Lithuanian citizen residing in Russia, on charges of money laundering and breaching international sanctions through his role in the Russian cryptocurrency exchange Garantex. The arrest, a joint operation by the Central Bureau of Investigation (CBI) and Kerala Police, came at the behest of the United States, which is now seeking his extradition.

Authorities nabbed Besciokov as he allegedly tried to escape India. The US Justice Department (DOJ) claims he managed Garantex, a Moscow-based exchange hit with sanctions in 2022, accusing it of handling over $96 billion in cryptocurrency deals tied to cybercriminals, terrorists, ransomware schemes, and drug trafficking networks.

Just last week, the United States, alongside Germany and Finland, took down Garantex’s digital infrastructure as part of a wider effort to curb illegal cryptocurrency activities.

Besciokov faces serious accusations in the United States, including conspiracy to launder money, which carries a potential 20-year sentence, violating the International Emergency Economic Powers Act with another possible 20 years, and running an unlicensed money-transmitting operation, punishable by up to five years. 

The U.S. Department of Justice says Besciokov was key to running Garantex, managing its tech setup, and greenlighting transactions that supposedly funded crimes threatening U.S. and global security.

After a U.S. request, India acted fast. On March 10, 2025, the Ministry of External Affairs got a temporary arrest warrant from a Delhi court under the 1962 Extradition Act. The CBI’s Interpol team worked with Kerala Police to nab Besciokov.

He’s slated to appear before the Patiala House Court soon, where extradition hearings will begin. While the timeline remains uncertain, officials expect a fast-tracked process given the gravity of the allegations.

In a related move, the US Secret Service confiscated three Garantex-linked domain names on March 6 and froze $26 million in connected funds. Blockchain analysts at TRM Labs hailed the operation as a critical step in battling illicit finance, though they cautioned that sanctioned exchanges often resurface under new identities.