DOJ Targets Crypto Platform Used by Hackers and Terrorists
The U.S. Department of Justice (DOJ) has charged the administrators of the Russian cryptocurrency exchange Garantex, accusing them of facilitating massive money laundering operations tied to cybercriminals, terrorists, and sanctioned entities.
The two men at the center of the indictment are Aleksej Besciokov, a Lithuanian national residing in Russia, and Aleksandr Mira Serda, a Russian national based in the United Arab Emirates. According to the DOJ, the duo was fully aware that illicit funds were being funneled through Garantex and even took steps to conceal the illegal activities on the platform.
The charges include money laundering conspiracy, violating U.S. sanctions, and operating an unlicensed money-transmitting business. If convicted, they each face up to 20 years in prison for money laundering, while Besciokov faces an additional 25 years for violating sanctions and running an unauthorized financial operation.
Millions Laundered, Billions in Transactions
Authorities allege that since 2019, Garantex processed at least $96 billion in cryptocurrency transactions, with hundreds of millions directly linked to criminal activities. The exchange is accused of being a major tool for cybercriminals, including North Korea’s notorious Lazarus Group, known for its hacking and ransomware attacks.
The crackdown on Garantex has been years in the making. In 2022, the U.S. Treasury flagged the exchange for processing over $100 million in illicit transactions, including millions linked to the Russian ransomware gang Conti and the now-defunct darknet market Hydra. By 2024, the European Union had also sanctioned Garantex, citing its close ties to Russian banks already blacklisted due to the war in Ukraine.
Law Enforcement Takes Down Garantex’s Websites
In a coordinated effort, the U.S. Secret Service and other law enforcement agencies seized Garantex’s websites, replacing them with a banner announcing the platform’s takedown. Attempts to contact Garantex via email and its official Telegram channel have gone unanswered.
Meanwhile, U.S. prosecutors revealed that over $26 million in illicit crypto funds linked to Garantex have been frozen, including 23 million Tether (USDT) and 35 Bitcoin held on Binance.
Garantex Fights Back Amid Mounting Pressure
Garantex responded defiantly, blaming U.S. sanctions and Tether’s crackdown on Russian-linked wallets for disrupting its services. In a statement on its Telegram channel, the exchange claimed it had suspended all transactions due to Tether blocking wallets holding over $28 million.
“We have bad news. Tether has entered the war against the Russian crypto market,” the statement read. “We are fighting and will not give up!”
Despite the growing legal pressure, Garantex remains silent on the indictment of its administrators and the seizure of its platform. Instead, it has warned users about scammers impersonating Garantex representatives and falsely offering ways to withdraw frozen funds.
