Crypto▼ Bearish
Russia detains 20+ in raids on crypto exchanges tied to scam network
FSB raids nine unregistered exchanges in Moscow City; detainees include employees and couriers allegedly funneling funds to Ukrainian-based operators. The crackdown follows Putin's new digital asset law taking effect Sept. 1.
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Russia has detained more than 20 people in raids on nine cryptocurrency exchange services, alleging they were used to launder proceeds from phone scams directed by Ukrainian-based coordinators.
The Federal Security Service, working with the Interior Ministry, shut down the unregistered exchange points operating from Moscow's International Business Center, known as Moscow City. The FSB said the exchanges were part of nine overseas-coordinated channels that moved funds out of Russia through crypto transactions.
Authorities said the case centers on proceeds from remote fraud targeting Russian citizens. Victims remained in continuous contact with scam call centers and followed detailed instructions from fraudsters without realizing the nature of the transactions, the FSB said.
Investigators allege the exchange services sold cryptocurrency to victims – including pensioners acting under the influence of scammers – before transferring the digital assets to accounts the FSB described as belonging to Ukrainian handlers.
Alongside the exchange employees, authorities detained alleged accomplices between 18 and 25 who 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 sent abroad.
The FSB also said many 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. Exchange employees and couriers are being investigated as alleged accomplices and could face prison terms of up to 10 years if convicted. Officials said they are continuing to identify additional victims, verify witness statements and determine whether financial losses can be recovered.