Russia Warns Crypto Investors Over Stablecoin Freeze Risk
Russia's Ministry of Finance has issued a warning to domestic crypto investors regarding the risk of stablecoin freezes. According to Deputy Finance Minister Ivan Chebeskov, Russian investors should not expect compensation if foreign stablecoin issuers such as USDT or USDC freeze their assets.
The warning mainly concerns stablecoins like USDT and USDC, whose issuers can freeze tokens in response to sanctions, court orders, or other legal requirements. Chebeskov stated that the government would not cover losses resulting from such freezes, including when investors hold the tokens in private wallets.
This means holding stablecoins in a private wallet does not necessarily prevent the issuer from freezing the tokens. In fact, 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.
With around 20 million Russians holding cryptocurrencies worth approximately 3.7 trillion rubles ($44 billion), and daily crypto transaction volumes of around 50 billion rubles (nearly $600 million), the figures highlight the scale of crypto ownership and trading in Russia. The new framework for digital assets under Federal Law No. 282-FZ aims to establish rules covering crypto trading, digital asset intermediaries, and investor access.