After its new law on cryptocurrencies, Russia is strengthening its control over unregistered platforms. In Moscow, the FSB carried out searches in nine exchange platforms suspected of having been used to launder funds from scams. More than 20 employees were arrested during this operation. According to the authorities, these structures converted money stolen from Russian victims into crypto-assets before transferring it to accounts linked to Ukrainian intermediaries.
In brief
- Russia closes nine unregistered cryptocurrency exchanges in Moscow.
- The FSB arrests more than 20 employees during searches carried out with the Ministry of the Interior.
- The authorities accuse these platforms of converting funds from telephone scams into crypto.
- An investigation into large-scale fraud must make it possible to identify victims and assess compensation.
Russia: nine exchange platforms raided in Moscow
A few days after the official adoption of the framework legalizing cryptocurrencies, the Russian Federal Security Service carried out this operation with the Russian Interior Ministry. The searches targeted nine unregistered cryptocurrency exchanges in the Moscow International Business Center. The FSB states in a press release published Friday that these structures participated in circuits allowing funds resulting from fraud to be transferred abroad. More than 20 employees were arrested as part of this investigation.
According to authorities, the funds came from Russian victims of telephone scams. The FSB links these frauds to fraudulent call centers based in Ukraine. Couriers aged between 18 and 25 collected cash from victims before handing it over to the platforms. The operators then converted these sums into cryptocurrency to allow their transfer to Ukrainian intermediary accounts.
Russia is also examining the role of people employed by these platforms. According to the FSB, some recruits came from different Russian regions and had limited financial knowledge. The authorities are now seeking to determine their involvement in the operations. This investigation should also make it possible to reconstruct the different circuits used to move funds.
Crypto-assets at the heart of the transfer circuit
The system described by the FSB is based on several successive stages. The victims first handed over their money to couriers recruited for this mission. The latter then delivered the cash to the relevant exchange platforms. The operators finally transformed these funds into crypto-assets before their transfer abroad.
For its part, the Ministry of the Interior has opened a criminal investigation for large-scale fraud. This offense reportedly carries up to ten years in prison under Russian law. At the same time, the FSB is continuing to identify the victims concerned. The authorities must also assess possible compensation.
This operation therefore takes place in a context of increased surveillance of unregistered exchange platforms. The closure of the nine structures allows the authorities to concentrate their investigations on the financial flows concerned. The FSB is continuing to analyze transfers and individual responsibilities.
The next steps will depend on the results of the investigation in Moscow. The authorities will have to identify the victims, specify the roles of those arrested and assess the potential losses. Russia could thus provide more details on the functioning of this circuit and on the legal consequences of the operation.
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