The U.S. Department of Justice (DOJ), alongside international partners in Germany and Finland, has successfully shut down the operations of Garantex, a cryptocurrency exchange that was allegedly involved in facilitating massive money laundering activities for transnational criminal organizations, including terrorist groups.
Since its inception in April 2019, Garantex has been linked to processing over $96 billion in cryptocurrency transactions, fueling illicit activities globally.
The Coordinated International Operation
The Justice Department’s coordinated action was aimed at dismantling the online infrastructure used by Garantex, which allegedly violated U.S. sanctions and facilitated money laundering on a large scale.
As part of the effort, an indictment was unsealed in the Eastern District of Virginia against two individuals: Aleksej Besciokov, a 46-year-old Lithuanian national residing in Russia, and Aleksandr Mira Serda, a 40-year-old Russian national based in the United Arab Emirates.
Both individuals are accused of operating Garantex, where they orchestrated complex financial schemes and aided in criminal activities, including hacking, ransomware attacks, drug trafficking, and terrorism.
The DOJ revealed that Besciokov and Serda were fully aware of the illegal nature of their transactions and took measures to hide their operations, even misrepresenting critical records to law enforcement authorities.
Money Laundering and Sanctions Violations
Between 2019 and 2025, Garantex facilitated hundreds of millions of dollars in criminal proceeds.
The exchange was also directly implicated in violating U.S. sanctions, continuing to conduct transactions with U.S.-based entities despite being blacklisted by the U.S.
Department of the Treasury’s Office of Foreign Assets Control (OFAC) on April 5, 2022.
Besciokov and Serda were aware of the sanctions but evaded them by constantly shifting cryptocurrency wallets and altering operational tactics to prevent U.S. exchanges from detecting their illicit activities.
The charges against Besciokov include conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and conspiracy to operate an unlicensed money transmitting business, in addition to the money laundering conspiracy charge. Serda faces similar charges for his role in the operation.
If convicted, the defendants could face lengthy prison sentences, with each conspiracy charge carrying up to 20 years in prison.
Law Enforcement Takes Action: Domains Seized and Funds Frozen
As part of the takedown, U.S. law enforcement authorities, led by the U.S. Secret Service (USSS), executed a seizure order against three key Garantex domains: Garantex.org, Garantex.io, and Garantex.academy.
These domains were central to the operation of the cryptocurrency exchange, and their seizure will prevent further criminal activities.
The DOJ’s coordinated action also led to the freezing of over $26 million in funds tied to Garantex’s laundering operations.
In addition, law enforcement agencies in Germany and Finland seized servers hosting Garantex’s activities, while U.S. authorities obtained copies of critical data, including customer and transaction records, which will aid in the ongoing investigation.
The Global Impact and Legal Ramifications
The case against Garantex highlights the growing concern over cryptocurrency being used for illegal purposes.
This is the latest in a series of international efforts to combat the misuse of digital currencies by criminal organizations.
The DOJ expressed appreciation for the collaboration of international law enforcement agencies, including those from Germany, the Netherlands, and Finland, as well as the vital assistance provided by Tether and blockchain analytics firm Elliptic.
Authorities are urging anyone who believes they were a victim of Garantex’s money laundering operations or who may have a claim to frozen funds to reach out to law enforcement for assistance.
As the investigation continues, the Justice Department is ensuring that the defendants remain presumed innocent until proven guilty in a court of law.
A Strong Message to Crypto-Based Criminal Activities
This high-profile case serves as a reminder of the increasing scrutiny faced by cryptocurrency exchanges and their administrators.
The coordinated efforts by the DOJ, along with its international partners, send a strong message to those seeking to exploit digital currencies for illegal activities.
As law enforcement continues to crack down on such operations, the message is clear: criminal enterprises will not go unpunished.