Russia Shuts Down Nine Unregistered Crypto Exchanges Amid Money Laundering Allegations
The Federal Security Service (FSB) in Russia has conducted raids on nine unregistered cryptocurrency exchanges in Moscow, allegedly linked to money laundering tied to fraud proceeds.
According to reports, over 20 detainees were arrested during the raids at the Moscow City business hub, with some couriers aged 18-25 collecting cash from victims and delivering it to the exchanges for conversion into cryptocurrency.
The FSB alleged that the exchanges converted stolen telephone-scam funds into crypto for international transfer via Ukrainian call centers.
Under Russia's crypto law, individuals and entities involved in organizing or facilitating crypto transactions without registration with the central bank could face criminal penalties including fines of up to $4,000 and prison terms of up to four years for basic violations. Harsher punishments are proposed for large-scale offenses or cases involving organized groups.