Russia Cracks Down on Unregistered Crypto Exchanges Ahead of Regulated Market Launch

Russia has intensified its crackdown on unregistered cryptocurrency exchange services in the lead-up to the country's regulated market launch on September 1. Authorities have detained over 20 workers and alleged accomplices in raids on nine unregistered crypto exchanges operating in Moscow's business district.

The Federal Security Service (FSB) claimed that the exchanges converted scam proceeds into cryptocurrency and transferred funds to Ukrainian handlers, allegedly forming part of nine overseas-coordinated channels used to move funds out of Russia through crypto transactions.

Investigators alleged that exchange employees and couriers sold cryptocurrency to victims, including pensioners who were acting under the influence of scammers, before transferring digital assets to accounts belonging to what the FSB described as Ukrainian handlers.