“Our findings indicate a direct onchain and offchain correlation between Grinex and Garantex,” the company stated in the report. They further added, “The fund-movement patterns, the use of disposable wallets, and the involvement of addresses previously linked to Garantex, provide unmistakable onchain evidence of this connection.”

Global Ledger wrapped up its investigation on March 13, stating it had discovered onchain data that showed Garantex laundered over $60 million in A7A5, a ruble-backed stablecoin, and moved them to addresses linked with Grinex.

“The burning and subsequent minting process was utilized to cleanse funds from Garantex, facilitating new coin minting from a system address with a clean slate,” the team explained.

A Garantex manager reportedly disclosed to Global Ledger that clients have been physically visiting the exchange office to transfer funds from Garantex to Grinex. “Additionally, offchain indicators such as transaction patterns, commentary, and exchange behaviors further support this connection,” they added.

The report also refers to a description of Grinex on the Russian crypto tracking site CoinMarketRating, suggesting that it was created by the owners of Garantex. The report indicates that “Grinex is not a standalone entity but a full-fledged successor to Garantex, continuing its financial activities despite the official shutdown of the exchange.”

By March 14, the influx of transactions on Grinex reached nearly $30 million, as per Global Ledger. CoinMarketRating now shows that the monthly trade volume has surpassed $68 million, with spot trading exceeding $2 million.

The US Department of the Treasury’s Office of Foreign Assets Control initially imposed sanctions on Garantex in April 2022 for alleged money laundering violations. On March 6, the US Department of Justice, in collaboration with authorities in Germany and Finland, froze domains linked to Garantex, accused of processing over $96 billion in illicit proceeds since its inception in 2019.

Stablecoin operator Tether also halted $27 million in Tether (USDT) on March 6, causing Garantex to cease all operations, including withdrawals. Shortly after, on March 12, Indian Central Bureau of Investigation officials arrested Aleksej Bešciokov, alleged operator of Garantex, on US charges including conspiracy to commit money laundering.

The post Revamped Crypto Exchange Garantex Resumes Operations Amid Allegations of Money Laundering appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Just last week, Garantex’s domains and servers were seized, and nearly $28 million worth of crypto linked to the exchange was frozen by an international alliance of law enforcement agencies from the U.S., Germany, and Finland, with the assistance of stablecoin issuer Tether.

In 2022, the U.S. Treasury’s Office of Foreign Asset Control (OFAC) sanctioned the exchange for its alleged deliberate involvement in money laundering activities for ransomware actors, such as Conti and Black Basta, and major darknet markets like Hydra, which was the world’s most significant of its kind until its shutdown in 2022.

Garantex has also been implicated in large-scale sanctions evasion, notably with high-end services like the TGR Group, serving Russian oligarchs. The exchange is also accused of aiding criminal activities such as money laundering for North Korea’s Lazarus Group, the mastermind behind the recent colossal $1.5 billion Bybit heist.

Alongside the seizure operation, U.S. prosecutors have charged Besciokov and another operator of Garantex, Aleksandr Mira Serda, a 40-year-old Russian national residing in the United Arab Emirates, with a money laundering conspiracy. Besciokov’s name currently features on the U.S. Secret Service’s Most Wanted list.

Efforts to get comments from the Kerala police and the U.S. Department of Justice (DOJ) regarding Besciokov’s reported arrest yielded no response.

The post Crypto Exchange Garantex’s Operator Aleksej Besciokov Apprehended in India: Latest Update appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.