Secret Service Launches Operation Targeting Alleged Money Laundering Crypto Exchange

The U.S. Secret Service is targeting the masterminds behind the Russian crypto exchange Garantex for their role in an alleged money laundering operation.

In a press release, the Secret Service says it is going after Garantex for allegedly facilitating the transaction of hundreds of millions of dollars in criminal proceeds, some of which was used to engage in illicit activities including drug trafficking, hacking and terrorist financing.

According to authorities, the crypto exchange’s operators – Russian national Aleksandr Mira Serda and Lithuanian national Aleksej Besciokov – knew that the platform was being used to launder funds and are accused of concealing such activities from law enforcement by providing incomplete or false information.

Both Serda and Besciokov were charged with one count of conspiracy to commit money laundering, which carries a maximum penalty of up to 20 years behind bars. Besciokov is also charged with violating the International Economic Emergency Powers Act as well as operating an unlicensed money-transmitting business. The charges carry sentences of up to 20 years and five years, respectively.

Besciokov was arrested last week by Indian authorities at the request of the US, according to recent reports.

As a part of its operation, on March 6th, the Secret Service seized three website domain names used by the crypto exchange as well as froze $26 million in funds. Finnish and German authorities also seized servers linked with Garantex.

That same day, Garantex announced it would be suspending its operations after stablecoin issuer Tether (USDT) blocked its platform’s wallets, which contained about $28 million.

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