Indian police have arrested the co-founder of Garantex, a Russian cryptocurrency exchange approved by the European Union and the US government under the Indian extradition law.
On Tuesday at 4pm (3:30am), Kerala Police arrested Lithuanian National Aleksedi Beshkov in the coastal municipality of Valkara, the state police officer who made the arrest.
Police officers said the Patiara House Court in New Delhi has issued an arrest warrant against Besiokov.
Last week, the US Department of Justice accused Besiocov of personally approving a transaction at Gallantex in relation to North Korean government hackers and other cybercriminals, and charged Besiocov for the crime to promote money laundering in crypto exchanges.
Police officers refused to say whether the arrest was the result of Besiocov's indictment in the United States. However, given the Indian authorities cited the state extradition law, Beshiokov clearly shows that he is unwanted for crimes within India.
Shortly after his arrest, Besiokov was produced in district court in the district and was taken to Patiara court on Monday, where he faces charges, officers told TechCrunch.
Details of the delivery fee were not immediately disclosed. Krebsonsecurity first reported Besciokov's arrest on Tuesday.
Garantex did not respond to TechCrunch's request for comments on Besciokov's arrest.
The DOJ, FBI, and Secret Service did not respond immediately to requests for comment.
Contact Us Are you planning to attend a meeting in Garantex office? Or do you have more information about the exchange? From unprocessed devices and networks, you can safely contact Lorenzo Franceschi-Bicchierai with a signal of +1 917 257 1382, via Telegram and Keybase @lorenzofb, or by email. You can also contact TechCrunch via SecureDrop.
Bessiokov was indicted along with Russian state Alexander Mira Serda, who co-founded Galantex and lives in the United Arab Emirates.
According to US prosecutors, the two administrators “averted and violated Garantex sanctions and redesigned US companies to unconsciously trade with Garantex in violation of the sanctions.”
Last week, the US Secret Service seized the Galantex website after the Justice Department sealed off the indictments against Beshkov and Serda. US authorities also frozen more than $26 million in cryptocurrency.
Since then, Garantex has suspended its business and came up with an unspecified “blocked assets solution,” before inviting customers to “face meetings” at their offices in Moscow, the Russian capital.
On Tuesday, Garantex told TechCrunch “Despite the unprecedented nature of the situation, Garantex has not waived its obligations to its users and intends to fully compensate for user assets blocked at the expense of existing assets in the Russian Federation region through procedures similar to financial institution rehabilitation procedures.”
“With the exception of the Compliance Department, Garantex activities will be terminated once the rehabilitation process is complete,” the press release states.