Russia has detained more than 20 people in raids on nine unregistered crypto exchange services in Moscow City, saying the businesses helped turn scam proceeds into cryptocurrency and route the money onward.
- More than 20 detained in Moscow City raids
- Nine unregistered exchange services targeted
- Phone-scam proceeds allegedly converted to crypto
- New digital asset rules begin Sept. 1
- Mining restrictions are also being expanded
According to Russia’s Federal Security Service, or FSB, the exchange points were used to convert money stolen through phone scams into cryptocurrency. The agency alleged the funds were then sent to accounts controlled by Ukrainian coordinators or handlers. That is a serious claim, but it remains an allegation from Russian authorities, not an independently verified fact.
The raids took place at the Moscow International Business Center, better known as Moscow City. Authorities said the exchange services were part of nine overseas-coordinated channels used to move funds out of Russia through crypto transactions. Investigators also said victims were kept in constant contact with scam call centers and often did not realize what transactions they were carrying out.
One especially ugly detail: investigators alleged that some exchange services sold cryptocurrency to victims, including pensioners, before transferring the digital assets onward. Alongside exchange employees, authorities detained alleged accomplices aged 18 to 25 who worked as couriers, collecting cash from defrauded people and delivering it to exchange points for conversion.
Russia’s Interior Ministry opened criminal cases under Part 4 of Article 159 of the Criminal Code, which covers fraud on an especially large scale. If convicted, suspects could face up to 10 years in prison. Authorities said they are still identifying more victims, checking witness statements, and figuring out whether losses can be recovered.
The timing matters. The raids came less than a week after President Vladimir Putin signed Russia’s new digital asset law, which is set to begin on Sept. 1. Moscow is not just cracking down on unregistered activity. It is also trying to build a narrower, state-supervised lane for crypto that it can monitor and control.
Under the new framework, cryptocurrency exchanges, brokers, custodians and other market participants will operate under formal rules. Exchange providers must join a government registry and meet minimum capital requirements. The law also imposes limits on retail crypto purchases and introduces mandatory suitability testing for investors, which is a bureaucratic way of saying: the state wants to decide who gets to play in the sandbox.
Crypto will remain banned as a payment method for ordinary goods and services inside Russia. At the same time, the law allows digital assets to be used in certain cross-border trade settlements. That split tells you a lot about Moscow’s view of the sector: useful for sanctioned trade lanes and financial plumbing, not so welcome as a broad retail payment system.
The Bank of Russia is preparing additional regulations covering exchange operations, organized trading, digital depositories and investor protection. In other words, the state is building a permissioned system, not some free-market crypto utopia. Anyone expecting a libertarian rodeo should probably keep dreaming.
The exchange raids also sit alongside a separate tightening on mining. Earlier this month, Prime Minister Mikhail Mishustin approved an expansion of regional cryptocurrency mining restrictions. The ban was extended to Moscow, the Moscow Region and parts of Kursk from Aug. 15, 2026 through Dec. 31, 2032. Russia also introduced a mining registry to separate registered operators from unauthorized ones.
That mining move is easier to understand than the usual policy fog. Mining can place heavy strain on electricity grids, and regional officials have long argued that power capacity should not be sacrificed so a bunch of machines can chase block rewards. If the grid is already groaning, the government is not exactly known for handing out sympathy tokens.
Put together, the message is blunt: Russia wants crypto under control, not out of reach. Unregistered exchanges are being tied to fraud, money movement and even national-security narratives, while licensed actors may be given a narrow legal path. That may help clean up some obvious scam infrastructure. It may also push activity deeper underground if the rules are too strict or too easy to weaponize.
The public side of the picture is not exactly glowing either. A Rambler&Co survey found that 69% of respondents could not identify a practical reason to use cryptocurrency, and more than half said they knew little about how cryptocurrencies work. Respondents also said they want clear regulations, licensed platforms and reliable information before using digital assets.
That last point is the part crypto cheerleaders often gloss over. A lot of people do not want maximal ideology, laser eyes, or a lecture about self-sovereignty from a guy with a cartoon ape avatar. They want something simple: rules they can understand, platforms they can trust, and a decent shot at not getting ripped off.
Russia’s approach reflects a familiar pattern: allow what serves state interests, restrict what does not, and keep a heavy hand on the rest. Crypto is being carved into a regulated corridor, while the unlicensed side of the market is being treated like a criminal sewer pipe. Harsh? Sure. But when authorities are raiding exchange points and opening fraud cases, subtlety is not exactly the vibe.
The uncomfortable truth is that regulation can do two things at once. It can reduce fraud and make legitimate actors easier to identify. It can also become a chokepoint that crushes privacy, competition and experimentation. Crypto was built to route around gatekeepers. Governments, predictably, keep trying to become the gatekeeper.
Key takeaways
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Why did Russia raid the exchange services?
Authorities say the unregistered exchanges helped convert scam proceeds into cryptocurrency and move the funds onward. The FSB also linked the network to alleged overseas-coordinated transfers. -
What are the suspects accused of?
Russia opened criminal cases under Part 4 of Article 159, which covers fraud on an especially large scale. Convictions could carry up to 10 years in prison. -
Is Russia banning crypto completely?
No. Russia is still banning crypto for ordinary domestic payments, but it is allowing certain cross-border uses and building a regulated framework for approved market participants. -
What changes on Sept. 1?
Russia’s new digital asset framework begins then, covering exchanges, brokers, custodians and related firms, with registry requirements, capital thresholds and investor suitability checks. -
Why is Russia restricting mining?
Officials are treating mining as a grid and energy-management issue, especially in regions where power capacity is under pressure. The restrictions are also part of a broader push to distinguish registered operators from unauthorized ones. -
Will tighter rules stop crypto crime?
Not necessarily. They may shut down some unlicensed operators, but overly rigid rules can also push activity into darker corners where fraud is harder to see.
Russia is not opening the crypto floodgates. It is building a filter: one set of rails for approved businesses, another path for enforcement, and very little patience for anything operating outside the system.
Further reading
More on Russia’s hardline crypto posture and the messy reality behind it:
