The US Department of Justice (DOJ) has disassembled Russia’s well-known crypto exchange Garantex and filed a lawsuit against it, claiming that the cryptocurrency exchange is involved in illegal money laundering for international criminal and terrorist organizations.
These actions are taken by the US Department of Justice (DOJ) with other foreign governmental bodies, including Europol, the FBI, and the European law enforcement agencies. Over the past few years, the firm has been constantly involved in illegal activities.
In the year 2019, the firm has proceeded with over $96 billion in crypto transactions in ransomware groups, drug traffickers, and sanctioned entities. In the year 2022, after the Hydra Market significantly impacted the cybercriminal landscape, the firm continued to provide its services to criminal organizations. The firm was also involved in illegal crypto activities.
As a result of it, an operation was held by the USA, Germany, and Finland, and during the investigation, the authorities seized over $26 million in illegal funds from the firm. The authorities have also filed legal charges against the firm’s administrators Aleksej Besciokov and Aleksandr Mira Serda for being responsible for laundering millions of dollars worth of cryptocurrencies.
As reported by Chainalysis, the firm was involved in illegal financing and has played a main role in laundering for ransom groups like Conti, Black Basta, and Play. Additionally, the firm has been involved in some of the largest attacks in the past three years.
The firm was also involved in drug trafficking and child sex abuse; additionally, it is also involved in stealing $22 million from a US-based blockchain platform. The firm was also financing Russia’s cybercrime forums and terrorists.
The data shows the firm’s illegal activities, by highlighting the total of 1.35%, at a scale of $96 billion, and the transfer of illegal funds over $1.3 billion. This figure also highlights that the firm’s illegal transactions were ten times higher compared to other centralized exchanges, showcasing the difference of 871%.
It also had beneficial contacts with illegal gangs like Lazarus Group, South Front, Mega Dark Market, Solaris Market, and the Russian crypto money laundering gang named Ekaterina Valeryevna Zhdanova.
Hence, the global authorities have come together to control the firm and have seized the firm’s website. Law enforcement agencies, blockchain analytics providers, and industry partners collaboratively took the initiative to seize the website.
However, this action against the seizure of Garantex is a warning for other crypto exchanges involved in illegal transactions and laundering, and it’s an action against illegal financing partners. That represents an essential milestone in worldwide crypto crime suppression efforts.
