U.S. and International Authorities Seize Crypto Exchange Garantex Over Money Laundering Allegations

A coalition of international law enforcement agencies has taken down the website of Garantex, a cryptocurrency exchange that had been sanctioned by the U.S. Treasury Department in April 2022 for facilitating illicit transactions.

Seizure and Law Enforcement Action

A seizure banner on the garantex[.]org website states that the domain was confiscated by the U.S. Secret Service under a seizure warrant issued by the U.S. Attorney's Office for the Eastern District of Virginia, in accordance with 18 U.S.C. §§ 981 and 982.

The operation was a coordinated effort involving:

• U.S. Department of Justice (DoJ)
• Federal Bureau of Investigation (FBI)
• Europol
• Dutch National Police
• German Federal Criminal Police Office (BKA)
• Frankfurt General Prosecutor's Office
• Finnish National Bureau of Investigation
• Estonian National Criminal Police

Background on Garantex & Prior Sanctions

Founded in 2019, Garantex was sanctioned for processing illicit transactions linked to darknet markets and cybercriminal groups like Hydra and Conti. In late 2023, additional sanctions targeted Ekaterina Zhdanova, a Russian national accused of laundering ransomware proceeds through the platform for groups such as Ryuk.

Recently, the European Union imposed similar sanctions on Garantex due to its ties to Russian banks—including Sberbank, T-Bank, and Alfa-Bank—leading Tether to freeze its wallets.

Garantex Responds on Telegram

In reaction to Tether’s actions, Garantex posted a message on its Telegram channel, stating:

"Dear users! We have bad news. Tether has entered the war against the Russian crypto market and blocked our wallets worth more than 2.5 billion rubles."
The exchange also announced a temporary suspension of services, including cryptocurrency withdrawals, while its team worked to resolve the issue.

DoJ Charges Two Individuals & Freezes $26M

On Friday, the U.S. Department of Justice (DoJ) formally announced the disruption of Garantex, alleging that it facilitated money laundering for transnational criminal organizations.

• Authorities seized three Garantex domains:
  • garantex[.]org
  • garantex[.]io
  • garantex[.]academy
• The exchange allegedly processed at least $96 billion in crypto transactions.

Additionally, the DoJ unsealed an indictment against:

1. Aleksej Besciokov (46) – Lithuanian national and Russian resident
   • Garantex's primary technical administrator
   • Managed platform infrastructure and approved transactions
2. Aleksandr Mira Serda (40) – Russian national, residing in UAE
   • Co-founder and chief commercial officer

Both individuals face charges of conspiracy to commit money laundering. Besciokov is also accused of:

• Violating U.S. sanctions under the International Emergency Economic Powers Act (IEEPA)
• Operating an unlicensed money transmitting business

Crypto Transactions & Criminal Ties

Elliptic, a blockchain intelligence firm, revealed that Garantex continued processing illicit funds even after sanctions were imposed.

• The exchange facilitated over $60 billion in transactions post-sanctions, with the majority in USDT on the TRON blockchain.
• It was used for sanctions evasion by Russian elites and to launder proceeds from:
  • Ransomware gangs (Conti, Lockbit, Black Basta)
  • Darknet markets (Blacksprut, Solaris, Mega, OMG!OMG!)
  • North Korean cybercriminals (Lazarus Group)
  • $30M from the $100M Horizon Bridge hack (February 2023)

Ongoing Investigations & Customer Warnings

Garantex has hinted at an upcoming "important announcement" on Telegram, while also warning users to beware of scammers posing as recovery agents.

• "Do not enter your credentials on unverified websites and do not follow dubious links," the exchange cautioned.

Conclusion

This seizure marks another major international crackdown on crypto exchanges enabling financial crime, signaling increased global enforcement efforts to combat money laundering, cybercrime, and illicit financial networks.