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- Law enforcement agencies from the U.S., Germany, and Finland seized key domains linked to the Russian exchange Garantex.
- Garantex allegedly laundered over $96 billion in digital assets since 2019.
- Two administrators face charges of money laundering and violating sanctions.
Finnish, German, and US police quickly shut down the operation of sanctioned Russian crypto exchange Garantex. They took over the infrastructure used by Garantex, a platform that has been charged with large-scale money laundering.
The operation is an extension of a worldwide initiative to crack down on crypto-related financial crimes. Garantex has been in stealth. The exchange has handled around $96 billion in criminal digital transfers since 2019, largely by criminal organizations. The U.S.
Global Operation Shuts Down Garantex Network
German and Finnish authorities supported the Department of Justice-led operation. The agencies worked to dismantle Garantex’s online platform, which criminals used to move illicit funds across borders.
Criminals exploited the platform for large-scale money laundering, using digital assets to process funds linked to ransomware attacks, darknet markets, and other illegal activities. Garantex continued its operations even after the U.S. Treasury sanctioned it in April 2022. Despite global sanctions, reports indicate that the exchange processed $60 billion in transactions.
In response to these disclosures, U.S. law enforcement and global partners took quick action. Tether, a stablecoin provider, helped in the operation by freezing $23 million in illicitly obtained funds. Elliptic, a blockchain analytics firm, played a key role in monitoring and tracing the transactions and uncovering the size of the operation.
Key Figures Indicted in Garantex Crackdown
The U.S. Department of Justice secretly indicted Garantex’s top officials. Authorities charged Aleksej Besciokov, a Lithuania resident in Russia, and Aleksandr Mira Serda, a UAE-based Russian citizen, with conspiracy to launder money, violating sanctions, and operating an unlicensed money-transmitting business.
These actions highlight growing global concerns over crypto exchanges facilitating illicit activities. The U.S. Treasury sanctioned Garantex in 2022, making it the third-largest exchange to face such penalties. As investigations continue, authorities will likely uncover more details about Garantex’s role in global money laundering.
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