Russia Warns Crypto Investors of Stablecoin Freeze Risk

Russia's Ministry of Finance has issued a warning to domestic crypto investors regarding the risk of stablecoin freezes. Deputy Finance Minister Ivan Chebeskov stated that the government will not compensate investors if foreign stablecoin issuers, such as USDT or USDC, freeze their assets.

The warning primarily concerns stablecoins, which can be frozen by their issuers in response to sanctions, court orders, or other legal requirements. This means that even if tokens are held in private wallets, the issuer may still be able to freeze them.

Russia has already seen this risk play out. In March 2025, Tether froze more than $28 million in USDT linked to Garantex after sanctions were imposed on the exchange.