Background

Garantex is a Russian cryptocurrency exchange that has been sanctioned by the European Union and the US government. The exchange has been accused of facilitating money laundering and other illicit activities.

The US Department of Justice has charged Besciokov with criminally facilitating money laundering on the crypto exchange. Indian government officials confirmed Besciokov's arrest, stating that he was planning to flee the country.

Arrest and Charges

Besciokov was arrested in the coastal municipality of Varkala, India, at 4 pm local time. The Patiala House Court in New Delhi issued the arrest warrant against him. He will be taken to the Patiala Court on Monday to face the charges.

The US Justice Department spokesperson confirmed that Besciokov was arrested in India at the request of the United States. Garantex did not respond to requests for comment about Besciokov's arrest.

Consequences

Following the arrest, Garantex suspended its operations and invited customers to face-to-face meetings at its office in Moscow. The company claims it will fully compensate users for blocked assets through a procedure similar to financial institution rehabilitation.

The US Secret Service seized Garantex's websites, and the Justice Department froze over $26 million in cryptocurrency. The arrest and subsequent actions against Garantex demonstrate the increasing scrutiny of cryptocurrency exchanges by governments worldwide.