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US charges admins of Garantex for allegedly facilitating crypto money laundering for terrorists and hackers
- The U.S. Department of Justice has charged the administrators of the Russian cryptocurrency exchange Garantex for allegedly facilitating money laundering by criminal and terrorist organizations.
- The charged administrators, Aleksej Besciokov and Aleksandr Mira Serda, are accused of knowing criminal proceeds were laundered through Garantex and concealing illegal activities on the platform.
- Garantex processed over $96 billion in cryptocurrency transactions since 2019, with prosecutors accusing Besciokov of allowing transactions linked to cybercriminals like Lazarus Group.
- The U.S. Secret Service seized Garantex's official websites, and the administrators face charges including money laundering conspiracy and violation of sanctions.
- Despite sanctions, Garantex continued transactions with U.S.-based entities, and U.S. law enforcement froze over $26 million in funds used for money laundering.
- Garantex suspended all services after Tether blocked wallets holding over $28 million, facing challenges from Tether's actions against the Russian crypto market.
- The DOJ emphasized that scammers are posing as Garantex to deceive users for personal data and cautioned against such fraudulent activities.
- The indicted administrators could face up to 20 years in prison for various charges, with uncertainties on whether they have been arrested or not.
- Garantex's association with illicit actors and darknet markets resulted in Western government actions, including sanctions by the U.S. Treasury and European Union.
- However, Garantex redesigned operations to evade sanctions, prompting law enforcement actions and financial seizures by the DOJ to combat money laundering.
- The administrators of Garantex are accused of changing operational cryptocurrency wallets daily to avoid detection by U.S.-based exchanges and facilitating illegal transactions.
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