Russian authorities have cracked down on nine unregistered crypto exchanges in Moscow. These operations are suspected of helping move illegally obtained funds abroad.
All about FSB’s latest raid
Russia’s Federal Security Service or the FSB’s operation was part of an investigation into an alleged money laundering network linked to scam operations.
The raids took place at the Moscow International Business Center, where authorities detained more than 20 employees. According to the FSB, the exchanges were allegedly used to convert money stolen from Russian phone scam victims into cryptocurrencies. Funds were then transferred to accounts connected to handlers in Ukraine.
The operation was carried out jointly by the FSB and Russia’s Interior Ministry. Investigators also said that some couriers, mostly between the ages of 18 and 25, collected cash directly from scam victims and delivered it to the exchanges for conversion.
In their statement, the FSB said,
Young people from the Russian regions who are looking for easy money are remotely recruited to work at these crypto exchanges despite having limited financial literacy…
Russia’s Interior Ministry has opened a criminal investigation into large-scale fraud, which can carry a prison sentence of up to 10 years under Russian law. Authorities are now working to identify additional victims and determine the scale of the losses involved.
A wider enforcement push
AMBCrypto previously reported that Russian authorities had also escalated their case against Telegram founder Pavel Durov. They’ve placed him on an international wanted list over allegations linked to terrorist activity.
This, and the latest raids are proof that Russian authorities are now stepping up action against platforms that they believe are linked to illegal financing. The two cases may be separate, but the recent spike in critical scrutiny is now obvious.
Final Summary
- Russian authorities raided nine unregistered crypto exchanges in Moscow over suspected money laundering linked to scam proceeds.
- More than 20 employees have been detained so far.
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