Indian authorities have arrested Aleksej Bešciokov, the alleged founder of the cryptocurrency exchange Garantex, on charges that could see him extradited to the United States. The Central Bureau of Investigation (CBI) confirmed that Bešciokov was detained in Kerala while on vacation with his family, just as he was preparing to leave the country. His arrest follows US allegations of conspiracy to commit money laundering, running an unlicensed money-transmitting business, and violating international economic sanctions.

According to a US indictment filed on February 27 in the Eastern District of Virginia, Bešciokov and his associate, Aleksandr Mira Serda, allegedly operated Garantex to launder illicit funds tied to ransomware, hacking, drug trafficking, and sanctions violations. The US authorities claim the exchange profited from facilitating these crimes since 2019. Bešciokov now faces extradition under India’s Extradition Act of 1962.

The arrest comes in the wake of Tether freezing $27 million in USDt on Garantex and the exchange’s subsequent shutdown of all operations on March 6. Additionally, US officials seized three domain names linked to the platform as part of the ongoing investigation. Garantex has been under scrutiny since April 2022, when the US Treasury Department sanctioned it for allegedly enabling illicit financial activities. The European Union imposed its own sanctions in February, citing Garantex’s ties to Russia amid the ongoing Ukraine conflict.

Meanwhile, co-founder Serda remains at large, and Garantex has not issued a statement. Bešciokov’s legal options for fighting extradition remain uncertain, but past cases, including those of Do Kwon and Sam Bankman-Fried, suggest a prolonged legal battle could be ahead.