Indian police have arrested Aleksej Besciokov, the co-founder of Garantex, a Russian cryptocurrency exchange sanctioned by the European Union and the US government, under India's extradition law, according to TechCrunch. The arrest was made in the coastal municipality of Varkala, Kerala, on Tuesday, with the Patiala House Court in New Delhi issuing the arrest warrant.

Besciokov, a Lithuanian national, was taken into custody at 4 p.m. local time (3:30 a.m. PT) and was produced before the local court in the district. He will be taken to the Patiala Court on Monday to face charges, a state police official confirmed to TechCrunch. The official declined to say whether the arrest was a result of Besciokov's indictment in the United States, but cited India's extradition law as the reason for the arrest.

Last week, the US Department of Justice accused Besciokov of personally approving transactions on Garantex linked to North Korea-government hackers and other cybercriminals, criminally charging him with facilitating money laundering on the crypto exchange. The US Secret Service seized Garantex's websites, and authorities froze more than $26 million in cryptocurrency.

Garantex, co-founded by Besciokov and Russian national Aleksandr Mira Serda, who lives in the United Arab Emirates, has been accused of "redesigning its operations to evade and violate U.S. sanctions and induce U.S. businesses to unwittingly transact with Garantex in violation of the sanctions." The exchange has suspended its operations and invited customers to "face-to-face meetings" at its office in Moscow after coming up with an unspecified "solution for blocked assets."

In a press release, Garantex stated that it intends to fully compensate for the blocked user assets at the expense of its existing assets in Russian Federation territory through a procedure similar to the financial institution rehabilitation procedure. The exchange's activities will cease after the rehabilitation procedure is completed, with the exception of the compliance department.

The arrest of Besciokov and the sanctions against Garantex highlight the growing concerns about cryptocurrency exchanges and their potential role in facilitating illegal activities. The incident also underscores the need for stricter regulations and oversight in the cryptocurrency industry to prevent such incidents in the future.

As the story continues to unfold, TechCrunch will provide updates and insights into the implications of Besciokov's arrest and the future of Garantex. If you have any information about the exchange or the arrest, you can contact TechCrunch securely via Signal, Telegram, Keybase, or email.