Key Highlights
- Russia’s Federal Security Service (FSB) says it shut down nine unregistered cryptocurrency exchange operations.
- More than 20 people were detained during raids in Moscow’s Moscow City business district.
- Authorities allege the exchanges helped launder money stolen through Ukrainian call-center scams.
Russian authorities say they have dismantled a cryptocurrency laundering network that allegedly helped move funds stolen through cross-border phone scams, in one of the country’s largest crypto-related enforcement actions since adopting a broader regulatory framework for digital assets.
In a statement released on August 7, Russia’s Federal Security Service (FSB) said it worked with the Ministry of Internal Affairs to shut down nine unregistered cryptocurrency exchange operations that investigators claim were used to convert fraud proceeds into digital assets before transferring them abroad.
According to the agency, more than 20 people were detained during raids conducted at Moscow City business district.
The FSB alleges the exchanges were used by Ukrainian call-center fraud groups to process money stolen from Russian citizens. Those allegations have not been independently verified.
Authorities allege victims were unaware of crypto transactions
According to the FSB, victims remained in contact with scammers throughout the fraud process and followed detailed instructions without realizing they were ultimately purchasing cryptocurrency.
Investigators allege the exchange operators converted the victims’ funds into crypto assets before transferring them to accounts controlled by individuals outside Russia.
The agency also said it detained several people between the ages of 18 and 25 who allegedly acted as couriers, collecting cash from victims before delivering it to the exchange operations.
Authorities further claimed that young people from across Russia were recruited online with promises of easy income to work for the alleged crypto businesses.
Criminal investigation underway
Russia’s Ministry of Internal Affairs has opened criminal investigations under Part 4 of Article 159 of the Russian Criminal Code, which covers large-scale fraud.
According to the FSB, exchange employees and couriers are being investigated on suspicion of assisting the alleged fraud operation. If convicted, they could face prison sentences of up to 10 years under Russian law.
The agency said investigators are continuing to identify additional victims and determine whether stolen funds can be recovered.
Enforcement comes as Russia expands crypto regulation
The crackdown comes only days after President Vladimir Putin signed Russia’s most comprehensive cryptocurrency regulatory framework, which is scheduled to take effect on September 1.
The new legislation establishes rules for cryptocurrency exchanges, mining operations and digital asset investors while maintaining Russia’s prohibition on using cryptocurrencies for everyday domestic payments.
The enforcement action also follows legislation approved earlier this summer that formally recognizes cryptocurrencies such as Bitcoin as property under Russian law and allows businesses to use digital assets for certain cross-border trade settlements, a move widely viewed as an effort to reduce reliance on traditional international payment systems amid ongoing Western sanctions.
Taken together, the recent legislative changes and the latest enforcement operation suggest Russian authorities are pursuing a dual-track approach: expanding the legal use of cryptocurrencies within a regulated framework while increasing pressure on unlicensed market participants and alleged criminal networks.
Oversight of crypto sector continues to increase
Russia has steadily expanded its oversight of the digital asset sector over the past year, introducing new licensing requirements, mining regulations and legal definitions for crypto assets.
At the same time, law enforcement agencies have intensified investigations into the alleged use of cryptocurrencies in fraud, money laundering and sanctions evasion.
The latest operation underscores that, while Russia is moving toward broader institutional acceptance of digital assets, authorities appear equally focused on targeting crypto activity that operates outside the country’s emerging regulatory framework.
Also Read: Robinhood Commits $30M to Whatnot Series G Funding Round
