Russia Cracks Down on Unlicensed Crypto Exchanges with Moscow City Raids

Russian authorities have launched a crackdown on unlicensed cryptocurrency exchanges in Moscow City. The operation, led by the FSB and Ministry of Internal Affairs, targeted nine exchange offices that were allegedly laundering funds obtained through phone scams targeting Russian citizens.

The raids resulted in the detention of over 20 individuals, primarily employees and couriers aged between 18 and 25, who were recruited remotely from various Russian regions to process large sums of cash and support the operations of unlicensed exchange offices. Some detainees claimed they believed they were working for the FSB or Rosfinmonitoring.

The authorities allege that these exchange offices processed transactions worth up to $2 million daily, highlighting the significant scale of the alleged scheme. The Ministry of Internal Affairs has initiated criminal proceedings for large-scale fraud, which could result in up to 10 years in prison if convicted.