Russia has detained over 20 workers in raids on nine crypto exchanges over alleged laundering scheme tied to scam proceeds.
Summary
- Russia has detained more than 20 people after raiding nine unregistered crypto exchange services in Moscow.
- Authorities alleged the exchanges converted scam proceeds into cryptocurrency and transferred the funds to Ukrainian handlers.
- Exchange employees and couriers are under investigation for alleged involvement in large scale fraud carrying penalties of up to 10 years in prison.
- The operation comes weeks before Russia’s new regulated cryptocurrency market is scheduled to begin on Sept. 1.
According to an official statement from Russia’s Federal Security Service (FSB), authorities, working with the Interior Ministry, shut down nine unregistered cryptocurrency exchange services operating from Moscow’s business district after alleging they were used to convert money stolen through phone scams into cryptocurrency and send it to accounts controlled by Ukrainian coordinators.
The operation took place at the Moscow International Business Center, commonly known as Moscow City, where more than 20 employees of the exchange services were detained. The FSB alleged the exchanges formed part of nine overseas-coordinated channels used to move funds out of Russia through crypto transactions.
Authorities said the case centers on proceeds from remote fraud targeting Russian citizens. According to the FSB, victims remained in continuous contact with scam call centers, followed detailed instructions from fraudsters and did not realize the nature of the transactions they were carrying out.
Crypto exchange workers and couriers face fraud charges
Investigators allege the exchange services sold cryptocurrency to victims, including pensioners who were acting under the influence of scammers, before transferring the digital assets to accounts belonging to what the FSB described as Ukrainian handlers.
Alongside the exchange employees, authorities detained alleged accomplices between the ages of 18 and 25 who, according to the agency, worked as couriers. Officials said the couriers collected cash from defrauded individuals and delivered it to the crypto exchange points for conversion before the funds were allegedly sent abroad.
The FSB also said many of the people recruited to work at the exchanges had been hired remotely from different Russian regions despite lacking sufficient financial knowledge. Investigators alleged they had been drawn into the operation by promises of easy earnings.
Russia’s Interior Ministry has opened criminal cases under Part 4 of Article 159 of the country’s Criminal Code, covering fraud on an especially large scale. According to the authorities, exchange employees and couriers are being investigated as alleged accomplices in the offenses and could face prison terms of up to 10 years if convicted.
At the same time, officials said they are continuing to identify additional victims, verify witness statements and determine whether financial losses can be recovered.
Russia steps up oversight before crypto rules take effect
The enforcement action comes less than a week after President Vladimir Putin signed Russia’s new digital asset law, which establishes a regulated framework for cryptocurrency exchanges, brokers, custodians and other market participants beginning Sept. 1.
Under the legislation, crypto exchange providers must join a government registry and maintain minimum capital requirements before offering services under the new legal regime. Existing exchange businesses have a transition period before registration requirements become mandatory, although the FSB identified the businesses targeted in the latest operation as unregistered exchange points allegedly involved in criminal activity.
The legislation also limits retail cryptocurrency purchases, introduces mandatory suitability testing for investors and continues Russia’s ban on using cryptocurrency to pay for ordinary goods and services inside the country. At the same time, it permits digital assets to be used in certain cross-border trade settlements under the framework approved by lawmakers.
Meanwhile, the Bank of Russia is preparing additional regulations covering exchange operations, organized trading, digital depositories and investor protection before the main provisions of the law take effect.
Authorities have tightened enforcement across the crypto sector
The latest raids follow several recent government measures affecting the cryptocurrency industry.
Earlier this month, Prime Minister Mikhail Mishustin approved an expansion of Russia’s regional cryptocurrency mining restrictions, extending a long-term mining ban to Moscow, the Moscow Region and parts of Kursk from Aug. 15 through the end of 2032. Officials said the decision was intended to address electricity capacity concerns in affected regions while continuing to allow registered activity elsewhere.
Authorities have also introduced a mining registry to distinguish registered operators from unauthorized ones as part of their supervision of the sector.
Separate survey findings published this week by Rambler&Co indicated that many Russians remain unfamiliar with digital assets despite the approaching launch of the regulated market.
According to the survey, 69% of respondents said they could not identify a practical reason to use cryptocurrency, while more than half reported knowing little about how cryptocurrencies work. Respondents also identified clear regulations, licensed platforms and reliable information as priorities before using digital assets.