India arrests crypto administrator with Russia links wanted by US

Indian authorities have arrested an executive of a cryptocurrency exchange wanted by the United States on suspicion of helping cybercriminals launder money and violating sanctions. Alexey Besednikov, a Lithuanian citizen and Russian resident, was apprehended in the southern state of Kerala on Tuesday, according to India's top investigative agency.

According to the U.S. Department of Justice (DOJ), Besednikov was among the managers at Garantex, a Russian cryptocurrency exchange, responsible for reviewing and approving its transactions. A recently released indictment by the DOJ indicates that Besednikov "resided in Russia," and it remains unclear when and why he traveled to India.

The Central Bureau of Investigation (CBI) of India stated in a statement that it issued a provisional arrest warrant for him at the request of Washington. The statement also noted that Besednikov will be brought before a court in Delhi. It is currently uncertain when he will be extradited to the United States.

The U.S. Department of Justice stated last week that the U.S. coordinated with Germany and Finland to dismantle online infrastructure used by Garantex. The department added that since 2019, Garantex has processed at least $96 billion in cryptocurrency transactions and is suspected of receiving hundreds of millions of dollars in criminal proceeds, which were then used to "facilitate numerous crimes," including hacking, ransomware, terrorism, and drug trafficking.

The U.S. Department of Justice also charged the Lithuanian national with violating sanctions and operating an "unlicensed money transmitting business." Last week, U.S. officials accused Besednikov of money laundering alongside Alexander Mieleskhin, the exchange's Russian co-founder. Garantex was sanctioned by the U.S. Treasury Department in 2022. The Justice Department stated that shortly thereafter, Besednikov and other managers "re-engineered" its operations to "evade sanctions" and entice U.S. businesses to work with it.