Tag: Money laundering

India Arrests Russian-Lithuanian Tied to Crypto Money Laundering Case

Summary:Indian authorities have arrested Aleksej Besciokov, a Russian-Lithuanian citizen, for money laundering and violating U.S. sanctions through his role in the Moscow-based crypto exchange Garantex. The U.S. accuses him of handling illicit transactions worth billions and seeks his extradition. He faces up to 45 years in prison for charges including money laundering and operating an unlicensed financial service. His arrest follows a global crackdown on Garantex, with U.S. authorities seizing domain names and freezing $26 million in related funds.

Indian law enforcement has detained Aleksej Besciokov, a Lithuanian citizen residing in Russia, over allegations of laundering money and breaching international sanctions through the Russian cryptocurrency exchange Garantex. The arrest, a joint operation by the Central Bureau of Investigation (CBI) and Kerala Police, came after a U.S. request for his extradition.

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Authorities caught Besciokov allegedly attempting to flee India. The U.S. Justice Department claims he managed Garantex, a Moscow-based exchange sanctioned in 2022 for processing over $96 billion in transactions tied to cybercriminals, terrorist groups, and drug trafficking networks.

Last week, U.S., German, and Finnish authorities dismantled Garantex’s digital infrastructure in a broader crackdown on illicit crypto activities. Besciokov faces charges of money laundering, violating the International Emergency Economic Powers Act, and operating an unlicensed financial service—offenses carrying up to 45 years in prison.

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Following a U.S. request, India swiftly issued a warrant on March 10. Besciokov will soon appear in court for extradition hearings. Meanwhile, U.S. authorities seized Garantex-linked domains and froze $26 million in related funds. Experts warn that while this is a major victory against illicit finance, similar exchanges often reappear under new identities.

AurumXchange Owner Indicted for Money Laundering

In brief

Maximiliano Pilipis, the proprietor of AurumXchange, was charged by U.S. officials with laundering money connected to the Silk Road and could face jail time and heavy fines.

AurumXchange Owner Indicted for Money Laundering Silk Road Funds

American authorities have indicted Maximiliano Pilipis, owner of cryptocurrency exchange AurumXchange, on allegations of laundering funds tied to the Silk Road darknet marketplace, as stated by the U.S. Department of Justice (DOJ) on Oct. 28.

Pilipis, a 53-year-old from Indiana, allegedly facilitated over $30 million between 2009 and 2013, partly from accounts linked to Silk Road. Silk Road, the pioneering darknet marketplace launched in 2011, was shut down in 2013 with founder Ross Ulbricht sentenced to life for charges including money laundering and drug trafficking.

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AurumXchange allegedly carried out over 100,000 transactions without a license, according to the DOJ. While the platform was in use, Pilipis allegedly earned about 10,000 BTC in fees, or $1.2 million. Investigators claim AurumXchange, a Dominican company registered under the name Aurum Capital Holding, laundered money through a number of wallet addresses, some of which were used to invest in real estate in Indiana, allegedly without disclosing the associated earnings on tax forms.

In January 2024, IRS agents seized close to $10 million from Pilipis’s Morgan Stanley accounts, stating he knowingly used illicit funds. A federal grand jury initially charged him with one money laundering count, later adding five counts and two counts of tax filing failures.

Pilipis can be sentenced to 10 years in jail and fined up to $250,000 if found guilty

A Greater Attention to Crypto Money Laundering Worldwide

Authorities throughout the world have increased their scrutiny of bitcoin exchanges for potential money laundering. In Sweden, authorities recently labeled many exchanges “professional money launderers,” and in Germany, authorities closed 47 exchanges for breaking anti-money laundering regulations. Significant exchanges including Binance, KuCoin, and OKEx have faced similar inquiries or accusations in recent years.

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