Russia Shuts Down Nine Crypto Exchanges in Moscow Over Fraud and Money Laundering Allegations
Key Takeaways
- •The FSB and Russia's Interior Ministry jointly raided nine unregistered cryptocurrency exchange services in Moscow and detained over 20 employees.
- •Authorities allege the exchanges converted money stolen from Russian phone scam victims into cryptocurrency before transferring it to accounts controlled by Ukrainian handlers.
- •The Interior Ministry has launched a criminal investigation into large-scale fraud, which carries a maximum sentence of ten years under Russian law.
- •Russia's new cryptocurrency law, signed by the president, will see its core provisions take effect in 2026 as the country balances expanding legitimate crypto channels with stricter enforcement against unregistered operations.
Russia's Federal Security Service (FSB) has raided nine unregistered cryptocurrency exchange services in Moscow over alleged money laundering tied to fraud proceeds that authorities have linked to Ukraine-based scam call centers.
According to an official statement released on Friday, the FSB detained more than 20 employees at the Moscow International Business Center, widely known as Moscow City. The operation was conducted jointly with Russia's Interior Ministry and targeted channels allegedly used to transfer illicit funds abroad using cryptocurrency.
The FSB said the exchanges converted money stolen from Russian victims of telephone scams into cryptocurrency before transferring it to accounts controlled by what the agency described as Ukrainian handlers. Authorities reported that couriers aged 18 to 25 collected cash from victims and delivered it to the exchanges for conversion into digital assets. The FSB also noted that young people from various Russian regions were recruited to work at the exchanges despite having limited financial literacy.
Phone fraud has become a widespread criminal issue in Russia, with authorities previously reporting billions of rubles in annual losses tied to schemes that often target elderly citizens. The use of cryptocurrency to move proceeds abroad has complicated recovery efforts, as digital asset transfers can bypass traditional banking surveillance and cross-border controls.
The Interior Ministry has opened a criminal investigation into large-scale fraud, which carries a maximum sentence of 10 years in prison under Russian law. The FSB stated that efforts to identify victims and evaluate potential compensation are ongoing.
The FSB serves as Russia's principal federal security and intelligence agency, responsible for counterintelligence, internal security, and counterterrorism operations. The raids come amid ongoing development of Russia's regulatory framework for digital assets, with core provisions of a new cryptocurrency law signed by the Russian president scheduled to take effect in 2026. In 2024, Russia also legalized cryptocurrency mining and authorized the use of digital assets for cross-border settlements, reflecting a dual approach of expanding legitimate crypto channels while tightening enforcement against unregistered operations.
Related: Russian president signs crypto law, core rules take effect in 2026